FOR SALE CHARACTER OFFICE INVESTMENT OPPORTUNITY SUITABLE FOR INVESTORS / DEVELOPERS OR OWNER OCCUPIERS BACK NEXT
INVESTMENT SUMMARY
• Character office investment opportunity with asset management / development potential, subject to planning
• Grade II listed former textile warehouse building which has been converted to high quality offices
• Located within Manchester’s vibrant “village” quarter in a prominent position overlooking the high profile “Origin” development site
• Opportunity to improve the presentation of the building and add value through the letting of vacant space, re-gear of existing leases and improvement of management regime.
• Currently producing a net rental income of £105,073 per annum
• Seeking offers in the region of £3,000,000 (Three Million Pounds)
• A purchase at this level reflects a capital value of £163 per sq ft BACK COLLEGE LAND
North Parade
River Irwell Street Exchange
COLLEGE LAND
Posts
Parsonage G ardens
Barton Square Posts
ST MARY'S PARSONAGE Fn Old Bank Street
St Ann's Barnes St ST MARY'S STREET Square BACK SOUTH PARADE Ps NEWMARKET BUNSEN STREET Brown Street
Ps NORFOLK ST Market Street Posts Posts DUNLOP STREET GARDEN LANE NORFOLK STREET Rochdale Canal
Spring Gardens PALL MALL ST ANN STREET SOUTHGATE BACK POOL FOLD SPEAR STREET House LITTLE LEVER STREET
BRIDGE STREET WEST Posts HALF MOON STREET KENT STREET SICKLE STREET STANLEY STREET Chapel Walks PHOENIX STREET BACK PICCADILLY SMITHY LANE HILTON STREET of Fraser TARIFF STREET Path
BREWER STREET
KING STREET WEST St Ann's Place DTZ SUSSEX STREET Marriots Court MARSDEN STREET BROWN STREET POLICE STREET St Ann's Alley
CAVELL STREET SPRING GARDENS Meal Street BUTTER LANE
assage Posts BACK BRIDGE STREET n's P
An MARBLE STREET
St CHEAPSIDE PICCADILLY King Street TARIFF STREET
SOUTHGATE
CROSS STREET River Irwell Posts Metrolink Piccadilly LEFT BANK BRIDGE STREET MILK STREET DOLEFIELD SOUTH KING STREET KING STREET DEANSGATE RIDGEFIELD GARTSIDE STREET Lizard Street Gardens MANGLE STREET YORK STREET KING STREET ROMAN ROAD DALE STREET CHINA LANE TOWN HALL LA STANLEY STREET Law BOW STREET ESSEX STREET PEAK STREET WOOD STREET CONCERT LANE Back China Lane Pall Mall
Post JOHN DALTON STREET Helo ST JAMES'S SQUARE FOUR YARDS TIB LANE Courts CHANCERY LANE PARKER STREET BACK PICCADILLY
CHANCERYPLACE Crown Square RIDGEFIELD BROWN STREET BOWLANE
Entry FOUNTAIN STREET SPRING GARDENS Post The Avenue Dalton PICCADILLY MULBERRY STREET TASLE ALLEY BACK NEXT BOOTH STREET PATON STREET NEW QUAY STREET CLARENCE STREET WEST MOSLEY STREET
HOPE STREET NEW YORK STREET MOSLEY STREET STREETCIRCUS BOW LANE Brazennose Street KENNEDY STREET Rochdale Canal AYTOUN STREET Dale Street Basin BACK QUAY STREET Lincoln Square DUCIE STREET JUTLAND STREET LENA STREET Hardman Square QUEEN STREET HARDMAN STREET PRINCESS STREET CHATHAM STREET WATER STREET BOOTH STREET PORTLAND STREET GORE STREET PINE STREET Rochdale Canal Hardman CHAIN STREET Albert Square ROBY STREET
TIVOLI STREET SIDNEY STREET CHARLOTTE STREET LLOYD STREET
YOUNG STREET Square SL
JODDRELL STREET
Little Quay Street BACK GEORGE STREET COOPER STREET LONDON ROAD GARTSIDE STREET ATKINSON STREET MAJOR STREET JACKSON'S ROW LOCATION FAULKNER STREET WEST MOSLEY STREET AYTOUN STREET QUAY STREET OperaBYROM STREET GEORGE STREET MINSHULL STREET LLOYD STREET NICHOLAS STREET T JAMES STREET River Irwell S GOLD STREET House COUNTY STREET COOPER STREET SILVER STREET SPARKLE STREET
Cycle Rochdaleth Canal a AUBURN STREET Manchester is widely regarded as the UK’s largest Town ng P Track wi To
MOUNT STREET SP Little John Street CENTRAL STREET Hall financial centre outside of London and is the LITTLE QUAY STREET HART STREET BOOTLE STREET Library administrative, educational, cultural, sporting and ATHERTON STREET Walk STREET ack REYNER STREET GREAT JOHN STREET St John's Passage JERUSALEM PL r T retail centre of the North West. PRINCES BRIDGE Cycle MOSLEY STREET ARTILLERY STREET Manchester STATION APPROACH AUBURN Marron Pl STORE STREET SL SOUTHMILL STREET Art Gallery BOAD STREET PETER STREET MOUNT STREET MINSHULL STREET
BACK GEORGE STREET AYTOUN STREET The conurbation of Greater Manchester is home to St Johns Midland REYNER STREET BYROM STREET GEORGE STREET FAULKNER STREET a population of 2.6 million and is the UK’s largest Coronation Str Gardens ST JOHN STREET PETERHotel STREET eet CHORLTON STREET SQUARE regional economy with an estimated £50 billion of
ChorltoLocn kStreet ST JAMES STREET Culvercliffe Walk GDP. The economy is diverse with an estimated 70 ST PETER'S
SOUTHMILL STREET LITTLE DAVID STREET MUSEUM STREET FTSE 100 companies represented, together with over WINDMILL STREET LOWER BYROM STREET DEANSGATE BLOOM STREET CAMP STREET St Peters RICHMOND STREET SILVER STREET MAJOR STREET 50 international banks and 60 major MOUNT STREET Piccadilly LIVERPOOL ROAD Square ABINGDON STREET Posts DICKINSON STREET PORTLAND STREET overseas companies. CANAL STREET Station WHITWORTH STREET LONDON ROAD BALE STREET Posts OXFORD STREET Major employers within the city include the SACKVILLE STREET LONGWORTH STREET MINSHULL STREET SOUTH
OLD
MEDLOCK ST WATSON STREET Co-Operative Group, Bank of New York, Royal Bank HALL STREET HART STREET WOOLLAM PLACE LIVERPOOL ROAD HARTER STREET Picadilly WATER STREET of Scotland, legal and other professional firms Posts MOSI SOUTH BISHOPSGATE Station TONMAN STREET WATERLOO STREET accountingBACK ACTON STREET for approximately 30% of all office PRINCESS STREET FAIRFIELD STREET Posts PUMP STREET BRAZIL STREET
Byrom Street COBOURG STREET employment in the city. The city is also becoming ck Lo RICE STREET P NEW ELM ROAD Wellington Place VENICE STREET EBDEN STREET WINSER STREET synonymous with the growth of technology, media Metrolink BARTON STREET ECHO STREET
STONE STREET and telecommunications (TMT) and also the WYRE STREET DEANSGATE GRANBY ROW BRIDGEWATER STREET LOWER MOSLEY STREET Subway Rochdale Canal Posts VENICE STREET expansion of the biopharmaceutical sector. DUKE PLACE TRAVIS STREET DUKE STREET SL Roman Garden
Collier Street ALTRINCHAM STREET
Basin Towing Path BEAVER STREET CHEPSTOW STREET SOUTH Palace Origin BOMBAY STREET The city is ranked 46th in the world for direct NEW ELM ROAD BEAUFORT STREET BARTON STREET Basin ATWOOD STREET SAMUEL OGDEN STREET Theatre Development BARING STREET WHITWORTH STREET commercial real estate investment since 2008 with POTATO WHARF Basin Basin CHEPSTOW STREET LOWER ALBION STREET SOUTHERN STREET Hilton
BRIDGEWATER STREET LONDON ROAD COLLIER STREET over 3.7 billion transacted. Manchester is the only UK SP GREAT BRIDGEWATER STREET Hotel GREAT BRIDGEWATER STREET BOMBAY STREET Dismantled Railway city alongside London to feature in the top 50. CHEPSTOW STREET Cycle Track TRAFFORD STREET OXFORD STREET Basin
GRANBY ROW BERRYSTREET Basin ALTRINCHAM STREET
Metrolink DAWSON STREET BUXTON STREET River Medlock STREET Castle Field Junction MAMUCIUM ROMAN FORT River Medlock (site of) SL Central Business Core The Village TRUMPET STREET Bridgewater Canal P Catalan Square SL TRAFFORD STREET
POTATO WHARF Post Deansgate Locks Rochdale Canal Gaythorn Tunnel CENTURY ALBION STREET Deansgate SACKVILLE STREET Tunnel Lock Dismantled Railway Towing Path Tunnel Albion Mill Lock China Town North Campus
Posts Rochdale Canal Tib Lock WHITWORTH STREET WEST WHITWORTH STREET WEST Tow Path Ramp Posts
BUGLESTREET MP 0 ROWENDALE Oxford Street Bridgewater Canal STREET CHARLES APPROACH STREET Towing Path SL JAMES LEIGH ST PRITCHARD STREET Picadilly Gateway Southern Gateway STREET Deansgate River Medlock STATION DONALD ST STREET SL Station HOLBROOK
STREET CALEY ST BARING CASTLE STREET CAMERON SL SP Station WHITWORTH STREET WEST MAKIN ST HEWITT STREET MP .25 WHITWORTH STREET WEST YORK STREET PRINCESS STREET Peters Fields Corridor Manchester
GILBERT STREET GILBERT MANCUNIAN WAY A57 (M) Basin STREET BUGLE WAKEFIELDSL ST
MALLARD STREET Old Basin MOUNCEY ST SACKVILLE STREET Hulme Junction BRIDGEWATER VIADUCT DEANSGATE Home MP 0.75 BLANTYRE STREET Medlock NEW WAKEFIELD STREET Bridgewater Canal LITTLE PETER STREET LITTLE PETER STREET River NEW WAKEFIELD STREET CHARLES STREET River Medlock Subway Ps GLOUCESTER STREET
Line of Posts Basin BLANTYRE STREET River Medlock
GREAT MARLBOROUGH STREET
COMMERCIAL STREET ALBION STREET River Medlock
River EGERTON STREET Castle CONSTANCE STREET Medlock
JORDAN STREET
BLANTYRE STREET Cycle Way Line of Posts ALPHA PLACE
Towing Path Quay Cycle Way Posts First MANCUNIAN WAY (ELEVATED ROAD)
River Medlock
WORSLEY STREET MEASHAM MEWS MANCUNIAN Posts HULME STREET
Cycle Track River Medlock Street WAY
Subway BALMFORTH STREET CHESTER ROAD SORTON STREET
Cycle Way
CLOAK STREET BRANCASTER ROAD Path (um)
MANCROFT WALK CITY ROAD EAST BACK NEXT
SITUATION
Manchester The building is situated at the heart of Victoria Station Manchester’s vibrant village quarter, occupying a prominent position on Princess Street opposite the high profile “origin” mixed use development site. Manchester Manchester Town Hall The building is close to some of Manchester’s key Central Salford leisure amenities such as the City Art Gallery, the Central Station Midland Hotel, the Palace Theatre, Manchester Piccadilly Gardens Central, Manchester Central Library and the Gay Village’s bars and restaurants. 56 Princess Street is located with excellent access to Manchester’s comprehensive transport facilities including Oxford Road, Deansgate and Piccadilly St Peters Railway Stations, the metrolink service from St Peters Square Square and Chorlton Street Bus Station.
Manchester Bus Station BACK NEXT
DESCRIPTION
56 Princess Street is a grade II listed The building benefits from excellent former textile warehouse which provides natural light with windows on elevations accommodation over basement, ground on Princess Street, the Rochdale Canal and four upper floors. The property is and Winser Street. accessed from a principal entrance The building was comprehensively and fronting onto Princess Street as well as a sympathetically refurbished to a high rear access on Winser Street. standard in 2006 by the current owners. The building provides a regular shaped The building is still well presented floor plate which can be split to however, a purchaser may have the provide various suite sizes. The floors opportunity to modernise and are accessed via two passenger lifts improve parts of the building as they with male and female toilet facilities feel necessary. throughout the building.
Floor Use Sq Ft Sq M Basement Office / Storage 2,836 263.5 Ground Office 1,633 151.7 Reception / break out area 490 45.5 1st Floor Office 3,430 318.7 Kitchen 101 9.4 2nd Floor Office 3,527 327.7 Kitchen 115 10.7 3rd Floor Office 3,677 341.6 Kitchen 142 13.2 4th Floor Office 3,288 305.5 Kitchen 137 12.7 TOTAL 19,376 1,800.1
The current configuration of some floors may offer a purchaser the opportunity to rentalise additional floor area not currently let, or included in the measurements above. BACK NEXT
SPECIFICATION TYPICAL UPPER FLOOR
The building benefits from the following specification:-
• Air conditioning system
w/c w/cw/c w/c • Full access raised floors to the majority of the building
• Two passenger lifts storage
store • Male and female WC’s kitchen • High quality kitchen facilities throughout
• Exposed timber beams and other historic features store • Fully glazed meeting rooms / offices • Significant storage / economical office space in the basement • Small area of land for car parking to the rear CANAL
PRINCESS STREET BACK NEXT
NEARBY DEVELOPMENT
Princess Street has improved significantly in recent years with investment to restore a number of buildings. In particular, 54 and 52 Princess Street have been refurbished and modernised to provide high quality character office space which has subsequently enjoyed great letting success. The ‘Origin’ mixed use development site, located opposite the building, has recently been sold and is expected to be developed to provide a mix of Hotel, 54 PRINCESS STREET ORIGIN - PRINCESS STREET 52 PRINCESS STREET Residential and Office accommodation. The local area is also benefiting from the £150m council investment into St Peters Square, improving the public realm and transport infrastructure, as well as private investment into new office and hotel buildings. Princess Street itself is also due to upgraded, becoming a two-way street as far as Major Street, allowing traffic from the south to access the city centre, improving both accessibility and prominence of the 56 Princess Street. BACK NEXT
TENANCY
The property is let on the following leases with rents predominantly collected monthly in advance:
Tenant Floor Area sq ft Lease Net Rent pa ERV pa Comments (£ psf) (£ psf) Start Expiry Vacant Part Basement 2,385 - - - £17,510 *5 - Vacant Ground 1,633 - - - £26,128 - (£16.00) Cube 3 Marketing Ltd 1st 3,430 10/01/11 10/01/16 £56,545 £57,135 Outside of the 1954 Act (£15.82) *4 (£16.00) *4 Fixed Service Charge of £13,960 Part Basement 451 Rates re-charged by landlord Lease provides right to park 3 cars at rear of the building Vacant 2nd 3,527 - - - £56,432 - (£16.00) Mustard Market Part 3rd 2,029 *2 21/12/14 21/12/15 £16,265 £32,464 Outside of the 1954 Act Research Ltd (£8.02) (£16.00) Rent inclusive of Service Charge £28,500* Subject to a schedule of condition Brand Vista Ltd Part 3rd 1,648 *2 25/02/12 25/05/15 £17,908 £26,368 Outside of the 1954 Act (£10.86) (£16.00) Fixed Service Charge of £4,940 Rates re-charged by landlord Subject to a schedule of condition Harpoon Media Ltd *3 Part 4th 1,500 15/02/14 15/02/16 £14,355 £52,608 Outside of the 1954 Act (£9.57) (£16.00) Rent Inclusive of Service Charge £23,400* Subject to Schedule of Condition Vacant Part 4th 1,788 - - - £28, 608 (£16.00) TOTAL 18,391 £105,073 £268,645
*Gross rent including service charge *2 Areas approximate due to no split in demise and lease plans unclear *3 Lease agreement only for part floor (approximately 1,500 sq ft) but no plan available to confirm exact *4 Assumed £5 per sq ft on basement *5 Assumed 1,117 sq ft @ £10 per sq ft remainder at £5 per sq ft demise and the tenant is occupying whole floor. BACK NEXT
ASSET MANAGEMENT / ERV SERVICE CHARGE /
The building was originally acquired for owner occupation by West Properties in 2006. Since NONE RECOVERABLE COSTS 2008, the property has not been used for this purpose and has been let on an adhoc basis with limited marketing, maintenance or refurbishment budget. The purchaser of this property We understand that the current service charge is running at £110,898 per annum will have the opportunity to improve the presentation of the building, speak with current (£6.03 per sq ft)* tenants to extend / formalise lease arrangements and improve the rental tone within the building. There are a number of fixed service charge agreements within leases as follows:- An active asset management regime will also enable a purchaser to fill any vacant space within the building and in our opinion achieve headline rents of £15.50 - £16.50 psf. Tenant Demise Space Fixed Service Service Charge Occupied Charge Per Sq Ft The following is a list of recent comparable lettings. Cube 3 1st and Part Basement (3,881sq ft) £13,960 (£3.60 psf)
Date Building Rent Size (Sq Ft) Tenant Brand Vista Part 3rd (1,648 sq ft) £4,940 (£3.00 psf)
Feb 15 52 Princess St £18.00 psf 711 Meconoo £18,900 Architects Dec 14 54 Princess St £16.00 psf 2,277 JM Architects There is therefore a service charge shortfall of £70,717 per annum, made up of:-
Sept 14 54 Princess St £14.50 psf 4,490 Havas Lynx Fixed Service Charge Shortfall £14,439 per annum
Vacant Suite Shortfall £56,278 per annum
COVENANT TENURE Total £70,717
Further information available on request. Freehold. We believe that adopting a more efficient service regime would reduce the tenant service charge shortfall.
Further information on request.
*Figures based on limited information provided, assumption made on 6 month service charge data figure BACK NEXT BACK
VAT
We understand that the properties are elected for VAT. We envisage that the transaction will be treated as a transfer of going concern (TOGC).
ENERGY PERFORMANCE CERTIFICATE
A full copy of the certificate can be provided upon request.
PROPOSAL
We are seeking offers in the region of £3,000,000 (Three Million Pounds), subject to contract and exclusive of VAT. A purchase at this level reflects a capital value of £163 per sq ft. FURTHER INFORMATION
If you require any further information or wish to arrange a viewing of the property, please do not hesitate to contact:- Oliver Rowe Mark Williams Peter Skelton [email protected] [email protected] [email protected] 07920 299 049 / 0161 819 8212 07891 810250 / 0161 819 8220 07702 883824 / 0161 819 8208
Misrepresentation Act 1967. These details are provided only as a general guide to what is being offered subject to contract and subject to lease being available and are not intended to be construed as containing any representation of fact upon which any interested party is entitled to rely. Other than this general guide neither we nor any person in our employ has any authority to make, give or imply any representation or warranty whatsoever relating to the properties in these details. Designed and produced by Richard Barber & Co. 0161 833 0555. June 2015.