Long Let Index-Linked Mixed-Use Investment Opportunity
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LONG LET INDEX-LINKED MIXED-USE INVESTMENT OPPORTUNITY Sheffield S1 2FD “A RARE OPPORTUNITY TO ACQUIRE A SECURE LONG LET INVESTMENT, SITUATED IN THE CITY OF SHEFFIELD, Sheffield S1 2FD SOUTH YORKSHIRE’S PREMIER COMMERCIAL CENTRE. 2 HARTSHEAD SQUARE, SHEFF IELD S1 2FD HARTSHEAD SQUARE, SHEFF IELD S1 2FD 3 EXECUTIVE SUMMARY - Mixed-use opportunity comprising 73% government let offices, 15% NCP car park and 12% retail. - Rare opportunity to acquire a substantial investment secured for over 10 years WAULT to excellent covenants. - Inflation proof income with 88% benefiting from RPI linked reviews, with the next reviews in 2022. - 100% of the income secured against undoubted and 5A1 D&B Rated covenants. - Situated in the heart of the Professional & Cathedral Quarter, benefiting from easy access to amenities and transport routes. - Sheffield is thepremier South Yorkshire commercial centre, home to two leading Universities and a wide range of national & global corporates and public sector occupiers. - £1.3 billion will be invested into Sheffield City Region enhancing the considerable regeneration undertaken to date. - Office availability is at an all-time historic low in Sheffield, fuelling rental growth. - Let to The Secretary of State for Transport, Local Government and the Regions, National Car Parks Ltd, Argos Distributors Limited and Harvey & Thompson Limited. - Part Freehold, part Long Leasehold. - Current passing rent of £2,784,404 per annum. - Offers sought in excess of £41,000,000 (Forty One Million Pounds). This reflects aNIY of 6.36% based on full acquisition costs. The vendor is able to sell the shares in a Jersey SPV, in which case the NIY would rise to 6.67% based on reduced costs. - Assuming the current tenancy position, and based on current RPI forecasts, the yield will increase to 7.23% (on full costs) and 7.59% (on reduced costs assuming SPV purchase) in 2022, and annually thereafter due to annual uplifts in the NCP lease, collared and capped at 1 and 3%. - An acquisition at this level, based on indicative debt terms, would produce an attractive cash on cash return in excess of 10%. Subject to Contract. “100% OF THE INCOME SECURED AGAINST UNDOUBTED AND 5A1 D&B RATED COVENANTS. 4 HARTSHEAD SQUARE, SHEFF IELD S1 2FD HARTSHEAD SQUARE, SHEFF IELD S1 2FD 5 THE MOOR CITY LOFTS SHOPPING CENTRE RESIDENTIAL TOWER ST PAUL’S PLACE SHEFFIELD T SHEFFIELD HALLAM HEART OF THE CITY II UNIVERSITY TOWN HALL, PEACE GARDENS JOHN LEWIS CRUCIBLE THEATRE BUS TERMINAL ORCHARD SQUARE SHOPPING CENTRE O2 ACADEMY T DIGITAL CAMPUS RECENT PLANNING PONDS FORGE PERMISSION FOR 330 INTERNATIONAL SPORTS HIGH END STUDENT FARGATE T CENTRE APARTMENTS. CASTLE SQUARE PROPOSED 280 BED T APARTMENT DEVELOPMENT SUPERTRAM SHEFFIELD CATHEDRAL REDEVELOPMENT OF 50,000 SQ FT OFFICES TO EASYHOTEL 131 BED ANGEL STREET 100 APARTMENTS DEVELOPMENT NEW 25 BED APARTMENT REDEVELOPMENT PROPOSED DIGITAL 250 BED STUDENT INCUBATION HUB RECENTLY COMPLETED 290 BED DEVELOPMENT STUDENT SCHEME RECENTLY COMPLETED 53 WEST BAR SQUARE £175M APARTMENT DEVELOPMENT MIXED-USE REGENERATION 6 HARTSHEAD SQUARE, SHEFF IELD S1 2FD HARTSHEAD SQUARE, SHEFF IELD S1 2FD 7 LOCATION Sheffield is the UK’s most centrally located city region, lying adjacent to the M1 Motorway. It is the commercial, administrative and retail centre of South Yorkshire. Sheffield is the third largest English district by population with a metropolitan population in excess of 1.5 million. The City is located 150 miles (240 km) north of London, 33 miles (53 km) south of Leeds and 38 miles (61 km) east of Manchester. Further to Sheffield City Region negotiating its unique SHEFFIELD IS THE devolution deal with Government, £1.3 billion will “COMMERCIAL, be invested into the local economy over the next 30 years. The deal gives Sheffield City Region devolved decision making powers on infrastructure, transport, ADMINISTRATIVE & skills, housing and drivers of business growth. This has ET transformed the city beyond recognition evolving the RETAIL CENTRE TRE ILLE S skyline and growing the business base serving as a SAV catalyst for future growth. OF SOUTH YORKSHIRE. D E GIB R RALTAR STR E K EET A6 D 1 O RIVERSIDE O LE ME Y W AY A A 61 DOW S T ICKER W SC M1 (4 MILES) OTL AND BR STR IDGE S EET TREET W EST BAR C AST LE GATE VICTORIA QUAYS S NIG H CATHEDRAL QUARTER I ST VINCENT’S QUARTER Q L U L E E N ST RE ET CASTLEGATE BANK STREET REEN 1 G A6 R E TE T A ANGEL TEN G N ANE I O L A AMP C W HA WL ST E EY AD LAN ST T BRO T COMMER CIAL STRE E T ET RE ST H T IG H STREET CHURCH LE O ST GEORGES E T POLD STR AN L T PE P I TR E AT E TREET ET G S SHEAF VALLEY RTOBELLO R PO T E E A TR T F S E ST WE AT G HEART OF THE CITY EL D CENTRAL BUS N T U EE T R TERMINAL R A ST NE O REET T T S A61 N DIVISION S I P ET RE T S DEVONSHIRE QUARTER SHEFFIELD AF FI SHEFFIELD HALLAM T T HE ZW REE S TON ST UNIVERSITY ING ILLIAM ELL W F UR NI STREET VAL T CULTURAL GA TE OW INDUSTRIAL SUPERTRAM R R E QUARTER RT A FU THE MOOR RN CH I T VA S L ST WN O R B 8 HARTSHEAD SQUARE, SHEFF IELD S1 2FD HARTSHEAD SQUARE, SHEFF IELD S1 2FD 9 SITUATION Hartshead Square is situated in the heart of the The immediate vicinity of the Property is being Professional and Cathedral Quarter of Sheffield. transformed: above Sports Direct, planning The Property sits adjacent to a Premier Inn hotel permission has been granted for a 330-bed high and is well located within close vicinity of the end student scheme. The former Primark is to be numerous amenities Sheffield offers and the developed into a 131 bed EasyHotel and the former prime retail pitch of Fargate. Co-op is under going a £3m revamp to become a tech hub for 1,100 people to further transform Sheffield’s The Property benefits from excellent transport digital economy. links with Castle Square Tram Stop and Angel Street Bus Stop situated on the Angel Street/ To the north of the property is the proposed 1.2m sq High Street frontage of the Property, providing ft West Bar Square office led mixed-use development. access around the City and further afield. Stretching across 5 acres, West Bar Square is an exciting £175m regeneration scheme. Sheffield mainline train station is within a 10- minute walk to the south of the Property. Being situated on the north east side of the City, the Property is easily accessible off Sheffield Parkway, a part dual carriage route, linking the City centre to the M1 Motorway at Junction 33 within a 10-minute drive time. THE IMMEDIATE The immediate vicinity has benefited from significant investment with numerous “VICINITY HAS BENEFITED redevelopment schemes converting obsolete office stock to residential and student FROM SIGNIFICANT residential apartments. INVESTMENT. 10 HARTSHEAD SQUARE, SHEFF IELD S1 2FD HARTSHEAD SQUARE, SHEFF IELD S1 2FD 11 COMMUNICATIONS 4 30 Road MILES TO NEWCASTLE NEWCASTLE WORLDWIDE The city enjoys excellent access to the national motorway 1 HR 53 MINS 1 HR network, with Junctions 31 to 34 of the M1 on the eastern fringe JUNCTIONS DESTINATIONS of the city, approximately 4 miles (6.5km) from the city centre affording fast north-south access. The M18 is accessed at LEEDS LEEDS 39 MINS 19 MINS 31 TO 34 OF FROM DONCASTER- Junction 32 of the M1 Motorway, providing direct access to the A1(M) within 9 miles (14 km) and on to the Humberside ports. MANCHESTER THE M1 SHEFFIELD AIRPORT The A57 and M67 provide access to Manchester to the west. 50 MINS Rail Sheffield mainline rail station provides direct services to major UK cities with fastest journey times as shown. Sheffield will be one of the key stations on the HS2 Northern LIVERPOOL 1 HR 51 MINS Extension which will enhance connectivity and improve journey SHEFFIELD times further. 1. 3 M Sheffield will also benefit from the development of Northern PASSENGERS Powerhouse Rail, which will reduce journey times to Leeds and Manchester to under 30 minutes. NOTTINGHAM USE NEARBY DERBY 50 MINS 27 MINS Air DONCASTER- EAST MIDLANDS EAST MIDLANDS Sheffield benefits from four national and international airports 43 MINS 30 MINS being within an hour’s drive: Doncaster-Sheffield, Manchester, SHEFFIELD AIRPORT Leeds-Bradford and East Midlands. LEICESTER 54 MINS ABERDEEN Doncaster Sheffield airport lies within 18 miles (29.0 km) east of BIRMINGHAM the city centre. The airport has expanded rapidly and handled 48 MINS over 1.3 million passengers in 2017. The airport provides LONDON LONDON 2 HRS 1 HR 9 MINS international services to over 30 worldwide destinations. M90 M9 M8 GLASGOW EDINBURGH A74(M) BELFAST NEWCASTLE CARLISLE HS2 A1(M) WILL FURTHER M6 ND LA ENHANCE A1(M) FIN YORK DUBLIN LEEDS SHEFFIELD’S M62 MANCHESTER DONCASTER LATVIA / LITHUANIA LIVERPOOL SHEFFIELD AIRPORT PO LAND / CONNECTIVITY ROMA HS2 PHASE 2 NIA / SHEFFIELD SLOV M6 NOTTINGHAM AKIA M1 G ERM A AN LEICESTER US Y TR / N M42 IA ETH TELFORD NORWICH / ER BU LA NORTHAMPTON LG ND BIRMINGHAM AR S M6 IA MILTON / C CY RO HS2 PHASE 1 KEYNES IPSWICH R A PU TIA M1 S M40 / S M5 TU TE R TA M4 M11 K D S CARDIFF OXFORD EY ITE A1(M) UN A / BRISTOL AD READING N M4 IT CA LONDON A L M5 M3 Y M25 / UK’S MOST CENTRALLY LOCATED CITY G DOVER R M20 E E M23 C E N SOUTHAMPTON WORTHING EA NEWQUAY BRIGHTON REGION – AT THE HUB OF KEY ROAD AND IB “ R Y R A E L C S A N G R E U U T R G RAIL NETWORKS.