NAPIER COURT
Stephenson Way, Wavertree Technology Park, Liverpool, L13 1HD
High Yielding Value Add Office Investment Opportunity INVESTMENT SUMMARY
An opportunity to acquire a high yielding value add office investment in an established business park in Merseyside.
ýý Well located on the established Wavertree Technology Park, which benefits from a dedicated train station and immediate access to the M62 motorway;
ýý An L shaped, detached three storey office building, totalling 50,143 sq ft, with 160 car parking spaces (1:313 sq ft);
ýý The building is capable of subdivision into smaller suites with a central core and two separate access points on each wing;
ýý The Tenant has undertaken a substantial rolling refurbishment program throughout their occupation;
ýý Let to Sony Interactive Entertainment Europe Limited on a full repairing and insuring lease, expiring 8 May 2024 with an option to break on 9 June 2020;
ýý Current passing rent of £500,000 per annum (£9.97 per sq ft);
ýý The rent increases to £1,267,200 per annum (£25.27 per sq ft) from 10 May 2019 until 9 June 2020;
ýý Dilapidations have been agreed at £1,650,000 (£33 per sq ft) should the Tenant exercise their option to break on 9 June 2020;
ýý The Tenant has a D&B rating of 5A1, representing a minimum risk of business failure;
ýý Market Rent in the region of £13.00 - £14.00 per sq ft;
ýý Long Leasehold – 232 years unexpired at a peppercorn rent;
ýý Offers are sought in the region of £5,000,000 (Five Million Pounds), subject to contract and exclusive of VAT. A purchase at this level reflects a net initial yield of 9.38%, a reversionary yield of 23.78% and a capital value of £100 per sq ft (assuming purchaser’s costs of 6.59%).
High Yielding Value Add Office Investment Opportunity Liverpool, L13 1HD 1 Gre H r S ree EVERTON 5342 LOCATION
A5050
A59 o L e VAU HALL
5188 Liverpool is situated in the North West of England and is the fifth largest A5049 E Pres R city in the UK with a total metropolitan population of 2.25m people. eens Dri e L Hill FAIRFIELD A5053 r Green Liverpool is the commercial and administrative capital of Merseyside which is LIVERPOOL 5173 Li er l Sh in P rk H s i l ISLINGTON E e L ne e L e Re il P rk ro Liverpool an integral part of the North West, the UK’s second largest regional economy, Uni ersi Li er l ree Li e ree Li er l Inn i n M62 P rk with its own economy worth more than £140 billion. The city has witnessed large e ree J4 Liverpool e r l ver ree change across a number of sectors over the past decade with over £5 billion of e r ROPEWALKS e Hill KNOWLEDGE 1 inward investment delivered through private and public sector partnership. This R l Al er UARTER D k Li er l Li er l WAVERTREE C her r l investment has seen output increase within the City region itself to an estimated 1
ALTIC TRIANGLE pper rli e ree £25 billion. Liverpool and the surrounding region is the number one recipient of A562
A561 foreign direct investment in the UK outside of London and the South East. 5175
5177 ee Drive ýý Liverpool is ranked 4th in the UK ýý World class academic and for economic potential growth medical institutions 5180
Se n P rk A562 r i ý ý ý 500,000 businesses within ý 3 universities producing over C l ers nes P rk one hour of the city centre 70,000 graduates per year o le Hill
ýý UK’s most digitally ýý 5th most visited city in the UK e L e skilled workforce for international visitors o Liverpool i e re o o or Li er l Sh in P rk ýý Liverpool is ranked 1st in the UK for both entrepreneurship and business growth The Li er l STANLEY Inn i n P rk TRAVEL TIMES
ROAD RAIL AIR ver ree e r Liverpool Liverpool Lime Street Liverpool John Lennon Airport 2.6 miles (4.2 km) 7 mins 7.3 miles M62 (Junction 4) Warrington Bank Quay Manchester 1 1.8 miles (2.9 km) 39 mins International Airport 1 Manchester Manchester Picadlly 33.3 miles 31 miles (50 km) 52 mins London London Euston WAVERTREE 222 miles (357 km) 2hrs 57 mins
High Yielding Value Add Office Investment Opportunity Liverpool, L13 1HD 2 SITUATION
The property is positioned in a prominent position on Liverpool Stephenson Way to the Innovation south of Wavertree Avenue. Centre Edge Lane Forming part of Wavertree Technology Park, the property Liverpool is located 2 miles (3.2 km) east Shopping Park of Liverpool City Centre and 1.8 miles (2.9 km) west of Junction 4 of the M62 motorway. The Park is situated to the south of Edge Lane (A5080), which serves as the primary route from Liverpool City Centre to the M62 motorway.
Wavertree Technology Park was developed in 1983 as an inner city regeneration area into what is now a flourishing business community, which benefits from close proximity to the City Centre. The Park sits within Wavertree the wider Liverpool Innovation Tech Park Park which extends to over 110 acres (45 hectares). The Park also benefits from a dedicated railway station providing five trains per hour to Liverpool Lime Street and two trains per hour to Manchester Airport.
High Yielding Value Add Office Investment Opportunity Liverpool, L13 1HD 3
DESCRIPTION
An L shaped, detached three-storey office building on a self-contained
site. The property was constructed in 1997 of steel frame construction
with a central core and two separate access points on each wing. The
tenant has undertaken a substantial rolling refurbishment program throughout their occupation, including recent replacement of the air conditioning condenser units and refurbishment of all welfare facilities.
The property benefits from the following key specification:
ýý Impressive feature full height ýý Male, female and disabled WCs glazed reception; on each floor;
ý ý ý Flexible floor plates capable ý Demised car parking for 160
of subdivision; vehicles (1:313 per sq ft);
ýý Suspended ceilings; ýý Perimeter trunking;
EXISTING GROUND FLOOR PLAN ýý Air conditioning; ýý High bandwidth, power and connectivity to the building.
ý ý 3 x 8 person passenger lifts;
ACCOMMODATION
The property has been measured in accordance with the RICS Code of Measuring Practice 6th Edition on a Net Internal Area (NIA) basis and extends to 50,143 sq ft (4,658,45 sq m).
Unit Sq ft Sq m
Ground Floor 18,354 1,705.14
First Floor 15,941 1,480.97
Second Floor 15,848 1,472.34
Total 50,143 4,658.45
High Yielding Value Add Office Investment Opportunity Liverpool, L13 1HD 4 SITE TENURE
The property comprises a site The property is held Long Leasehold for a area of approximately 2.69 acres term of 250 years from 10 August 2000 at (1.09 ha). a peppercorn rent (Title No. MS459907 & MS459908)
The Freehold is managed by M7 Real Estate. COVENANT
Sony Interactive Entertainment Europe Limited (Company No. 03277793)
Sony Computer Entertainment was founded in 1995 and is engaged in the distribution, marketing and sale of PS4, PS3 and PS Vita software and hardware in Europe, the Middle East, Africa and New Zealand. The company provides a range of services including technical support, software development and consultancy that supports the development of PlayStation products in Europe and Australasia. The company also develops, publishes, markets and distributes games software and manages the third part licensing programs for these platforms.
Sony Interactive Entertainment Europe Limited operates as a subsidiary of Sony Corporation. The tenant has been in occupation since 1997, but is expected to relocate to Liverpool City Centre.
Further information can be found at www.playstation.com/en-gb
D&B Rating 5A 1. Their financial position can be summarised as follows:
Fiscal Fiscal Fiscal consolidated consolidated consolidated 31 Mar 2018 31 Mar 3017 31 Mar 2016
Sales / turnover £4,911,310,000 £4,181,068,000 £3,284,908,000
Profit / (loss) £733,665,000 £151,458,000 £184,964,000 before taxes
Tangible net worth £576,792,000 £472,182,000 £322,280,000
Net current assets £402,581,000 £306,742,000 £167,706,000 / (liabilities)
High Yielding Value Add Office Investment Opportunity Liverpool, L13 1HD 5 TENANCY
The property is let to Sony Interactive Entertainment Europe Limited on a full repairing and insuring lease for a term of 10 years from 9 May 2014 (expiring 8 May 2024). There is a break option on 9 June 2020, subject to 6 months’ written notice. The current passing rent is £500,000 per annum (£9.97 per sq ft). The rent increases to £1,267,200 per annum (£25.27 per sq ft) from 10 May 2019 until 9 June 2020.
The Tenant’s break option may also be exercised between 10 June 2020 and 9 September 2020 subject to the payment of an increased rent of £1,620,000 per annum (£31.31 per sq ft). If the break option is not exercised during that period, the rent will revert back to £500,000 per annum (£9.97 per sq ft) from 10 September 2020 for the remainder of the term.
Dilapidations have been agreed at £1,650,000 (£33 per sq ft) should the Tenant exercise their option to option on 9 June 2020. Should the Tenant not exercise this option to break, the dilapidations will be a minimum of £1,500,000 (£30 per sq ft). Further information is available upon request. INVESTMENT RATIONALE
ýý Exciting value add opportunity, allowing refurbishment and remodelling of a high quality headquarters premises with flexible floor plates;
ýý Substantial dilapidations payment agreed and documented, totalling £1,650,000 (£33 per sq ft);
ýý Premium rent agreed and documented at £1,267,200 per annum (£25.27 per sq ft), effective from May 2019;
ýý Low base rent of £500,000 per annum (£9.97 per sq ft);
ýý Highly reversionary with the Estimated Market Rent in the region of £13.00 - £14.00 per sq ft;
ýý The Tenant has recently refurbished the welfare facilities and replaced the external air conditioning condenser units limiting the future capital expenditure required.
High Yielding Value Add Office Investment Opportunity Liverpool, L13 1HD 6 EPC CONTACT
The property has an Energy For further information or to arrange an Performance Asset Rating inspection, please contact: of D 89. VAT TOM DAWSON 0161 833 7717 The property has been elected for VAT. It is anticipated the 07468 727 122 transaction will be treated as [email protected] a Transfer of a Going Concern (TOGC). MIKE POCHIN ANTI-MONEY 0161 833 7692 LAUNDERING 07856 584 523 REGULATIONS [email protected]
In accordance with Anti-Money FREDDIE OWEN Laundering Regulations, two forms of identification and 020 7861 1225 confirmation of the source of 07436 109 666 funding will be required from the successful purchaser. [email protected]
PROPOSAL
We are instructed to seek offers in the region of £5,000,000 (Five Million Pounds), subject to contract and exclusive of VAT. A purchase at this level reflects a net initial yield of 9.38%, a reversionary yield of 23.78% and a capital value of £100 per sq ft (assuming purchaser’s costs of 6.59%). www.knightfrank.com
IMPORTANT NOTICE. Particulars: These particulars are not an offer or contract, nor part of one. You should not rely on statements by Knight Frank LLP in the particulars or by word of mouth or in writing (“information”) as being factually accurate about the property, its condition or its value. Neither Knight Frank LLP has any authority to make any representations about the property, and accordingly any information given is entirely without responsibility on the part of the agents, seller(s) or lessor(s). Photos etc: The photographs show only certain parts of the property as they appeared at the time they were taken. Areas,measurements and distances given are approximate only. Regulations etc: Any reference to alterations to, or use of, any part of the property does not mean that any necessary planning, building regulations or other consent has been obtained. A buyer or lessee must find out by inspection or in other ways that these matters have been properly dealt with and that all information is correct. VAT: The VAT position relating to the property may change without notice. Knight Frank LLP is a limited liability partnership registered in England with registered number OC305934. Our registered office is 55 Baker Street, London W1U 8AN,where you may look at a list of members’ names. April 2019.