Prime Freehold City Centre Office Investment M2 3HZ Investment Summary

Prime freehold city centre office investment.

The property is situated in the heart of the City Centre and positioned within the prime office core.

The building totals 15,434 sq ft and comprises 6 storeys of fully refurbished offices and an A2 unit at ground floor level.

The office accommodation has undergone a significant refurbishment programme to include a new reception area, refurbished office suites, shower facilities, and attractive outside amenity spaces on the 2nd, 4th and 6th floors. The 1st, 2nd and 3rd floors are sub divided and run as an all inclusive business centre.

The property benefits from 9 underground car parking spaces providing a ratio of 1: 1,714 sq ft.

Total income of £299,075 per annum exclusive.

Seeking offers in the region of £3,000,000. A purchase at this level shows a Net Initial Yield of 9.42%, assuming purchasers costs of 5.8%. Location

Manchester is widely regarded as the UK’s largest financial centre outside of London and is the administrative, educational, cultural, sporting and retail centre for the North West.

The conurbation of Greater Manchester is to a population of 2.6 million and is the UK’s largest regional economy with an estimated £50 billion of GDP. The economy is diverse and an estimated 70 of the FTSE 100 companies are represented together with over 50 international banks and 600 major overseas companies.

Major employers within the city include The Co-Operative Group, Bank of New York, Royal Bank of Scotland, legal and other professional firms accounting for approximately 30% of all office employment in the city. The city is also becoming synonymous with the growth of technology, media and telecommunications (TMT) and also the expansion of the Biopharmaceutical sector.

The city is ranked 46th in the world for direct commercial real estate investment since 2008 with over £3.75 billion transacted. It is the only UK city alongside London to feature in the top 50.

FREE BUS SHUTTLE

FREE BUS SHUTTLE Manchester Infrastructure

Air - is the UK’s 3rd largest, with over 100 Airlines offering direct flights to 225 destinations worldwide, connecting over 22 million passengers to more places than any other Airport in the UK.

Rail - The City has two mainline railway stations, Piccadilly and Victoria linked by shuttle bus and the Metrolink tramway. There are localised stations in the City at Oxford Road, Deansgate and Salford Central. There are intercity train links to all major cities within the UK with a half hourly service to London Euston ( journey times are approximately 2 hours 10 minutes).

Road - Manchester has over 100 miles of motorway within the conurbation; the M62 provides a link to Liverpool, Leeds and the West and East Coast ports. The M6 provides links to Birmingham and London in the South and Glasgow and Edinburgh to the North.

Metrolink - Metrolink is the city’s light rail transit system which provides access around the city centre and out to the nearby conurbations. The system extends to Eccles and Altrincham in the east and Bury and Rochdale in the North, with eight stops within the city centre. The network is set to expand further with work underway for new lines across the city centre and an extension to Manchester Airport in the south. Situation

61 Mosley Street enjoys a strategic corner position located within the 1 St Peter’s Square – Under construction, a 268,000 sq ft city’s prime office core on the junction of Mosley Street and Charlotte Grade A, BREEAM excellent office scheme which is being developed Street. It is an area which is favoured by many professional companies, via a joint venture between The Greater Manchester Pension Fund including accountants, banks, insurance companies and solicitors. (GMPF) and Argent. Completion is expected Market Street and the Arndale Centre comprising the primary retail Q3 of 2014. pitches in Manchester are located within a two minute walk. 2 St Peter’s Square – a proposed 160,000 sq ft Grade A office The property is well situated for public transport with Piccadilly building. Gardens and St Peter’s Square Metrolink stations close proximity of the subject property. Manchester Piccadilly Train station is a 5 3 St Peter’s Square – a proposed 110,000 sq ft Grade A office minute walk away. building.

The property is also located 200 metres north of St Peter’s Square Landmark – a proposed 180,000 sq ft Grade A office building. which is currently a focal point of many of the significant infrastructure and development projects ongoing in the city. Circa £180,000,000 of public expenditure has been committed to the Square through Manchester City Council’s decision to substantially refurbish and upgrade its civil buildings consisting of the Central Library and .

In addition to the public expenditure, there are a number of large scale projects at various stages of planning and development in the vicinity of Mosley Street and St Peter’s Square. Description

61 Mosley Street is a centrally located retail and office building split Retail – A single let unit arranged over ground floor. The unit is over basement, ground and six upper floors. There are 9 under croft currently occupied by an A2 (Financial and Professional Services use car parking spaces. class. Planning permission would not be required to change to A1 (retail/shops). Offices – Accessed off Mosley Street the office accommodation benefits from a remodelled and enlarged reception served by a six-person passenger lift to each floor. Part of the accommodation is open plan whilst the 1st, 2nd and 3rd floors are run as an all inclusive business centre with suites ranging from 170 sq ft to 900 sq ft.

Specification includes:

Suspended ceiling and LG7 Lighting to all suites/floors

Kitchenette, male and female WC’s on each floor

Gas central heating system

Secondary glazing to all floors

Passenger lift

Reception with desk facility

Intercom entry system

Shower and secure bike storage facilities

Access to secure basement car parking

Outside terraces to 2nd, 4th and 6th floors Accommodation and Tenancy Schedule

FLOOR RENT - ANNUAL ANNUAL DEMISE AREA TENANT ANNUAL RENT LEASE EXPIRY COMMENTS (SQ FT) PER SQ FT SERVICE CHARGE INSURANCE

GROUND FLOOR 2,500 RULLION CONTRACT SERVICES £41,500 £16.60 £2,200.00 £3,584.00 06-MAR-23 FRI

FIRST FLOOR, SUITES 1 262 UNDER OFFER (CHONG DONG) £6,550 £25.00 INC INC 30-SEP-15 PROPOSED 1 YEAR LEASE COMMENCING ON 1ST OCTOBER 2014.

FIRST FLOOR, SUITES 2 235 BLUE SKY £5,875 £25.00 INC INC 31-JAN-15 FRI. BUSINESS CENTRE*

FIRST FLOOR, SUITE 3 228 JAMES O'DELL £5,700 £25.00 INC INC 12-JAN-17 FRI. BUSINESS CENTRE*

FIRST FLOOR, SUITE 4A 170 MOHAMMED AFTAB ARIF £4,170 £24.53 INC INC 31-JUL-13 HOLDING OVER. IN DISCUSSIONS TO RENEW

FIRST FLOOR, SUITE 4B 180 VIBE STUDIO £4,170 £23.17 INC INC 14-DEC-15 FRI. BUSINESS CENTRE*

FIRST FLOOR, SUITE 5 176 UTURN TAX REFUND £4,375 £24.86 INC INC 08-DEC-14 FRI. BUSINESS CENTRE*

FIRST FLOOR, SUITE 6 350 VACA NT £24.00 £- £- QUOTING - £8,750 PA

FIRST FLOOR, SUITE 7 805 AM 2 PM RECRUITMENT SOLUTIONS £20,000 £24.84 INC INC 31-OCT-14 FRI. BUSINESS CENTRE*

SECOND FLOOR, SUITE 1 900 YOUNGS INVESTMENT COMPANY £22,500 £25.00 INC INC 15-FEB-16 FRI. BUSINESS CENTRE*

SECOND FLOOR, SUITE 2&3 500 YOUNGS INVESTMENT COMPANY £12,500 £25.00 INC INC 15-JUN-15 FRI. BUSINESS CENTRE*

SECOND FLOOR, SUITE 4 175 JIABAI WANG £4,375 £25.00 INC INC 14-MAY-14 FRI. BUSINESS CENTRE*

SECOND FLOOR, SUITE 5 650 UNDER OFFER (CFES LTD) £18,500 £28.46 INC INC 31-JUL-16 PROPOSED 2 YEAR LEASE COMMENCING ON 1ST AUGUST 2014. TENANT DEPOSIT OF £2,500 PA

THIRD FLOOR, SUITE 1 440 VACA NT £24.00 £- £- QUOTING - £11,000 PA

THIRD FLOOR, SUITE 2 460 D-WISE TECHNOLOGIES UK £11,700 £25.43 INC INC 30-APR-15 FRI. BUSINESS CENTRE*

THIRD FLOOR, SUITE 3 350 BRIGHT ESTATE AGENTS £8,550 £24.43 INC INC 31-JAN-14 TENANT HOLDING OVER. FRI. BUSINESS CENTRE*

THIRD FLOOR, SUITE 4 175 BRANDED PRODUCT PROTECTION SERVICES £4,170 £23.83 INC INC 31-OCT-14 FRI. BUSINESS CENTRE*

THIRD FLOOR, SUITE 5 175 GRANT ERSKINE ARCHITECTS £4,170 £23.83 INC INC 29-FEB-16 FRI. BUSINESS CENTRE*

THIRD FLOOR, SUITE 6 650 VINCENT BOND & CO £16,250 £25.00 INC INC 30-NOV-15 FRI. BUSINESS CENTRE*

BUSINESS CENTRE TOTAL 6,881 £144,300 TOTAL SHORTFALL OF £25,803.75

FOURTH FLOOR 2,203 FABRIC DIGITAL £31,900 £14.48 £5,940.00 £660.00 31-MAY-18 TENANT DEPOSIT OF £7,975. FRI

FIFTH FLOOR 2,198 OJK £32,970 £15.00 £5,934.60 £659.40 31-AUG-17 FRI

SIXTH FLOOR 1,652 F A PARTNERSHIP LIMITED £26,350 £15.95 £4,460.00 £496.00 27-SEP-15 FRI

1 CAR PARK BAY YOUNG INVESTMENTS £1,650 LICENSE

1 CAR PARK BAY MOHAMMED AFTAB ARIF £1,650 LICENSE

2 CAR PARK BAYS FABRIC DIGITAL £3,500 LICENSE

3 CAR PARK BAYS RULLION CONTRACT SERVICES £6,000 LICENSE

15,434 BUILDING TOTAL £299,075.00 £18,534.60 £5,339.40 *INCLUSIVE OF SERVICE CHARGE, INSURANCE, BUSINESS RATES AND SERVICES

BUSINESS CENTRE SHORTFALL £25,803.75

NET RENT £273,271.25 Manchester Market

Take-up in the Office market totalled A significant driver in the market has also been ‘business centre’, c. 900,000 sq ft for 2013 with the main driver being SME’s taking serviced office space which offers all inclusive, short term space ranging from 500 sq ft to 5,000 sq ft. The majority of this accommodation. The City has seen a dramatic increase in enquiry was grade B, refurbished accommodation ranging from c. £12 - £19 levels and subsequent lettings to occupiers looking for fixed overheads per sq ft. and flexible lease terms.

A schedule of recent, comparable lettings are detailed below: Service Charge

PROPERTY SIZE RENT/PRICE TENANT LANDLORD The service charge on the ground, 4th, 5th and 6th floor currently ADDRESS (SQ FT) (PER SQ FT) stands at £18,534.60 per annum, this equates to a low figure of £2.17 Alexandra PDA Buildings, 1,482 Atticus Law £16.50 Holdings per sq ft (excluding building insurance). Queen Street

Property Merchant 3,033 Live Link Allicance £16.00 Exchange The service charge on the business centre (1st, 2nd and 3rd floors) is Group inclusive within the rent. The non recoverable costs in connection 1,460 Randstand Bruntwood £16.00 with the business centre breaks down as follows: Ian Patrick Bow Chambers 2,595 £19.50 Blackhurst Properties

Castlefield DESCRIPTION PER SQ FT 2,256 Bruntwood £16.00 Investments Service Charge £2.70 Allscripts PDA Insurance £0.30 15 Oxford Court 6,136 Healthcare £16.00 Holdings Solutions Business Rates N/A* Sunlight House 4,342 Booking.com SWIP £16.50 Services £0.75 Churchgate Total £3.75 House (Part 6th 9,048 Capita Dunedin £16.00 Floor) *Subject to small business rates relief.

Lowry House 1,423 Uinsure Bruntwood £19.50 The total shortfall for the Business Centre is £25,803.73 per annum. Asset Management

Letting of suites 1 and 6 on the 1st floor and suite 1 on the 3rd floor. This will provide an additional income of £26,300 pa.

Planning permission has been approved for the erection of glass box extensions to the 2nd and 4th floor terraces (marked red on the two architect elevation plans).

A planning application has also been submitted to add two additional floors to the top of the building (see architects plans). This application is currently still pending. VAT

We understand the property has been elected for VAT and it is anticipated that the sale will be structured as a Transfer of a Going Concern (TOGC).

EPC

Copies of the Energy Performance Certificate are available upon request.

Proposal

We are instructed to seek offers in the region of £3,000,000 (Three Million Pounds). Assuming purchaser costs of 5.8% this offers the following yield profiles:

Net initial yield of 9.42%

Reversionary yield of 10.04% (upon letting of the vacant business centre suite)

Triple net yield of 8.61% CONTACT

The Team

Ted Murray Darren Moorhouse Matthew Cox MRICS MRICS MRICS

MOBILE: TEL: MOBILE: TEL: MOBILE: TEL: 07766 00 33 22 0161 850 0497 07778 15 99 22 0161 850 7788 07788 99 99 11 0161 850 0498

EMAIL: EMAIL: EMAIL: [email protected] [email protected] [email protected]

Connect with us

ADDRESS: EMAIL: TEL: 41 South King Street. Manchester, M2 6DE [email protected] 0161 234 0101

For further investments & lettings, please visit: www.kingstreetcommercial.com Subject to Contract 2014

MISREPRESENTATION ACT 1967 KING STREET COMMERCIAL, FOR ITSELF AND FOR THE VENDORS OF THIS PROPERTY, HEREBY GIVE NOTICE THAT: These particulars do not constitute, nor constitute any part of, an offer or con- tract. King Street Commercial Ltd and its members accept no legal responsibility for any statement or representation whether written, oral or implied or whether contained in any advertisement particulars or other matters issued or any correspondence entered into by them and whether made in any antecedent present or subsequent enquiries or negotiations. Neither King Street Commercial nor their principals, members, agents, servants or representatives have any authority whatsoever to make or give any representation or warranty whatsoever whether written or implied in relation to this property. Any intending purchaser must satisfy himself by inspection or otherwise as to the correctness of any antecedent present or subsequent statements or representations, and should not rely upon the same unless he has satisfied himself accordingly. Unless otherwise stated all prices and rents are quoted exclusive of Value Added Tax (VAT), any intending purchasers or lessees must satisfy themselves independently as to the incidence of vat in respect of any transaction. Designed by 90degrees Design and Marketing 0161 833 1890. 2014