MANCHESTER OFFICE INVESTMENT 40 PETER STREET, M2 5GP INVESTMENT SUMMARY • Rare opportunity to purchase a central Manchester office building

• Excellent central location adjacent to and St Peter’s Square

• Recent refurbishment of all common areas, and vacant 2nd floor suite

• Well appointed office space with WC and kitchen amenities for each suite

• 3rd and 4th floorlet to well established engineer and Chartered Surveying businesses

• Low rents with significant reversionary potential

• Other asset management opportunities include letting the vacant space and a potential rooftop extension (STP)

• Total NIA of 4,752 sq ft

• Long leasehold interest with 178 years unexpired at a peppercorn rent

• Total rent of £94,365 inclusive of 12 months rental guarantee on the vacant 2nd floor

• Offers in excess of£1,482,000 (STC)

• Capital value of £312 psf

• Net Initial Yield of 6.00%

• Estimated reversionary yield of 7.28%

40 PETER STREET, MANCHESTER M2 5GP OFFICE INVESTMENT MANCHESTER Manchester is widely regarded as the educational, commercial and administrative capital of the North. The city has the largest student population in Europe with over 100,000 students across four universities.

The local economy is thriving with many blue-chip organisations choosing Manchester as the location for global headquarters. Manchester is one of the best-connected cities in the UK with extensive routes into the city by road, rail and air. The city is to the fourth busiest railway station in the UK with over 23 million annual passengers using Manchester .

Manchester International Airport is the third busiest in the UK, providing direct flights to 220 destinations worldwide – more than any other UK airport.

Manchester has seen a large increase in funding for new Grade A office space, with schemes such as One & Two St Peter’s Square, New Bailey, 101 Embankment, Landmark and 125 all ST. JOHN’S DEVELOPMENT looking to capitalise on the upward rental trajectory. YORK

LEEDS BRADFORD PRESTON BLACKBURN KINGSTON UPON HULL

WAKEFIELD Huddersfield M6 M62 M66 101 EMBANKMENT M61 MOUTH OF THE HUMBER

OLDHAM DONCASTER

MANCHESTER M1 M6 LIVERPOOL M60 M62 Peak District WARRINGTON SHEFFIELD M56 LLANDUDNO M56 M56 Northwich Macclesfield BANGOR Chesterfield LINCOLN CHESTER M1 M6

WREXHAM STOKE-ON-TRENT Boston NOTTINGHAM THE WASH DERBY Grantham Snowdonia 40 PETER STREET, MANCHESTER M2 5GP National Park M1 MANCHESTER CITY CENTRE OFFICE INVESTMENT

Burton Upon Trent

Loughborough M6 SHREWSBURY TELFORD LICHFIELD M54 LEICESTER

WOLVERHAMPTON PETERBOROUGH M42

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

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Royal Leamington Spa SITUATION 40 Peter Street is excellently located in the city centre, approximately half way between the offices at St Peter’s Square and Spinningfields.

There are an array of leisure amenities in the immediate vicinity, including bars/restaurants along Deansgate, Peter Street and in the Great Northern .

The property is extremely convenient for travelling to work by public transport, with two tram stops at Deansgate and St Peters Square as well as train stations at nearby Oxford Road and Deansgate.

The office is also within a short walk of the new St John’s development on the former site, and the increasingly popular First Street Scheme. There are several large multi storey car parks nearby, including the 527 space NCP car park at the Great Northern. EXCELLENT

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40 PETER STREET, MANCHESTER M2 5GP MANCHESTER CITY CENTRE OFFICE INVESTMENT DESCRIPTION 40 Peter Street comprises an early 1950’s, steel framed office building with solid concrete floors, limestone clad elevations and powder coated aluminium double-glazed windows under a flat roof.

The property accommodates a church at basement, ground and first floors, with independently accessed office accommodation on the 2nd, 3rd and 4th floor levels.

The second floor has recently been refurbished to a high standard and provides modern office accommodation including: • LED Lighting • Bright, open floor space • Air conditioning • Suspended ceiling POTENTIAL • Perimeter trunking FOR A • 3.24m ceiling height LIGHTWEIGHT • 6 person lift to all floors ROOFTOP The building’s common areas were also refurbished at the same EXTENSION time, including new flooring and painting to the stairwell, as well as an improved entrance.

As with several recent city centre extensions, there is the potential for a lightweight rooftop extension to be developed as a way to increase rental income (subject to obtaining the necessary planning permissions).

40 PETER STREET, MANCHESTER M2 5GP MANCHESTER CITY CENTRE OFFICE INVESTMENT TENANCY The property is let in accordance with the tenancy schedule below. The vendor is providing a 12 month rent, rates and service charge guarantee for the second floor unit.

TENURE The property is held Long Leasehold at a peppercorn rent for a term of 200 years from 16th November 1998 (c. 178 years unexpired).

SERVICE CHARGE The property’s service charge has run at an average of £29,489 per annum over the last three years (c. £6.44 psf), fully recoverable from occupational tenants.

TENANCY SCHEDULE

LEASE LEASE RENT (PER ERV (PER UNIT TENANT AREA TERM RENT (PSF) ERV (PSF) COMMENTS START EXPIRY ANNUM) ANNUM)

12 months Recently refurbished to high from specification. Landlord to Second Floor Vacant 1,557 sqft - 1 £38,925 £25.00 £38,925 £25.00 completion provide 12 months rents, rates of sale and service charge guarantee.

Premium of £12,000 paid to tenant and 3 months rent free Third Floor Christopher Dee LLP 1,557 sqft 01/02/2019 5 31/01/2024 £32,000 £20.55 £38,925 £25.00 provided (net effective £28,000 per year)

Break in 2019 not exercised by the tenant. Area provided Shepherd Gilmour Fourth Floor 1,638 sqft 16/02/2016 5 15/02/2021 £23,440 £14.31 £39,425 £25.00 excludes small section Infrastructure Limited subsequently brought into use by tenants works.

TOTAL / AVERAGE 4,752 sqft £94,365 £19.86 £117,275 £25.00

AWULT to Expiry: 1.8 years

40 PETER STREET, MANCHESTER M2 5GP MANCHESTER CITY CENTRE OFFICE INVESTMENT COVENANT STATUS

Christopher Dee LLP are a well-established property investment agency based in Manchester.

The firm have been successfully operating in the city centre for 21 years, acting on the acquisition and disposal of commercial property across the country on behalf of their clients.

Further information is available at www.christopherdee.co.uk

Shepherd Gilmour Infrastructure Limited are consultant engineers headquartered in Manchester.

They provide services across a wide range of sectors including starter units, regional HQ buildings for international clients, office park developments, multi-storey city centre developments and mixed-use developments. They have been in operation for more than 60 years, and saw turnover double in 2019 to £1.2m.

Further information is available at www.shepherd-gilmour.co.uk

40 PETER STREET, MANCHESTER M2 5GP MANCHESTER CITY CENTRE OFFICE INVESTMENT PROPOSAL FURTHER INFORMATION Our client is seeking offers in excess of For further information or to arrange an inspection, please contact:

£1,482,000 Daniel Campbell (One Million Four Hundred and Eighty Two Thousand Tel: 07741 593 968 Email: [email protected] Pounds), subject to contract, for the long leasehold interest.

A purchase at this level reflects: Chris Bathurst Tel: 07957 138 003 Email: [email protected] 6.00% £312 psf Net Initial Yield Capital Value 7.28% Estimated Reversionary Yield

VAT It is anticipated that the sale will be dealt with as a transfer of a Christopher Dee LLP going concern. 40 Peter Street Manchester M2 5GP ENERGY PERFORMANCE CERTIFICATE Available upon request. 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 ANTI-MONEY LAUNDERING REGULATIONS 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 In accordance with Anti-Money Laundering Regulations, two forms property. Rents quoted in these particulars may be subject to VAT in addition. The reference to any mechanical or electrical equipment or of identification and confirmation of the source of funding will be 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 required from the successful purchaser. requirements. June 2020.

40 PETER STREET, MANCHESTER M2 5GP MANCHESTER CITY CENTRE OFFICE INVESTMENT