Historic Landmark Office Investment Opportunity a Rare Opportunity to Acquire a Truly Iconic CONTENTS Landmark in the Heart of Liverpool
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L IVERPOOL Historic Landmark Office Investment Opportunity A rare opportunity to acquire a truly Iconic CONTENTS Landmark in the Heart of Liverpool 7 EXECUTIVE SUMMARY 8 STEEPED IN HISTORY 12 LIVERPOOL 20 WORLD CLASS CONNECTIVITY 25 THE BUILDINGS 36 TENANCY SCHEDULE 38 INCOME ANALYSIS 39 COVENANT INFORMATION 42 LIVERPOOL OCCUPATIONAL OVERVIEW 43 REGIONAL INVESTMENT MARKET 44 INVESTMENT RATIONALE Liverpool, L2 3YL 45 FURTHER INFORMATION An Iconic Building Steeped in History, Exchange Flags is now regarded as the premier office location in Liverpool City Centre. Exchange Flags, Liverpool, Merseyside L2 3YL Exchange Flags, Liverpool, Merseyside L2 3YL 4 5 EXECUTIVE SUMMARY Landmark office building located in the heart of the city, Exchange Flags offers an unrivalled location in Liverpool City Centre. Liverpool is the UK’s fifth largest city. Combined with Greater Manchester the two regions are the driving force of the £149 billion North West Economy, the UK’s second largest with a population of 7 million. Positioned directly behind the Town Hall, Exchange Flags is strategically located between the established business districts of Castle Street and Old Hall Street and situated just a short walk to Liverpool ONE and only a couple of minutes to Moorfields train station. The property provides a total of 359,558 sq ft. This comprises 313,263 sq ft of high quality office accommodation across ten upper floors, 27,980 sq ft of retail and leisure accommodation across the ground and three basement floors and a 18,315 sq ft museum. 152 secure car parking spaces. Multi-let to a diverse range of tenants including The Secretary of State for Defence, Brabners LLP, Jackson Canter, Regus, DLA Piper and Brookes Bell LLP, with a WAULT of 5.2 years to breaks and 6.3 years to lease expiries. Freehold. Passing rent of £5,573,996 per annum equating to a low £15.50 per sq ft overall. Headline rents for the building currently stand at £17.00 per sq ft and are expected to continue to grow given the strong supply / demand dynamics of Liverpool and the acute lack of good quality office space in the city centre. Opportunity to drive performance through active asset management, including letting the vacant space, driving rental income and working with existing tenants to extend leases. Offers are sought in excess of £70,000,000 (Seventy Million Pounds). A purchase at this price would reflect a net initial yield of 7.82% and a low capital value of £195 per sq ft after allowing for purchaser’s costs of 1.80% assuming purchase of the SPV. Subject to contract and exclusive of VAT. Exchange Flags, Liverpool, Merseyside L2 3YL Exchange Flags, Liverpool, Merseyside L2 3YL 6 7 STEEPED IN HISTORY The Bunker – history The War Memorial A bunker was built in secret in Derby House, just before the The semi-circular courtyard faces Liverpool Town Hall and contains outbreak of the war; it became known locally as the “Citadel” the bronze World War I War memorial is set into a semi-circular niche or “Fortress” due to the extensive reinforced concrete in centre of main south elevation. The War Memorial was funded protection given to the basement. It was bomb proof and by subscriptions raised among members of the Liverpool Royal gas proof, with 100 rooms covering 50,000 square feet. Exchange Company and was designed in 1916, initially dedicated to those members of the company and their sons who had enlisted. The Royal Navy, Air Force and Marines worked together in the bunker to monitor enemy convoys and “wolf packs” of By the time of the final unveiling in 1924 it had also become a submarines, which threatened to destroy Britain in the earliest memorial to the war dead of the Liverpool Exchange Newsroom and stages of the war. At its height the bunker housed close to their sons. In 1953 the memorial was moved to its present location 400 mostly young women who managed the movement of from the old Exchange News Room, and placed between piers hundreds of merchant ships that carried supplies into the UK supporting stone sculptures by Siegfried Charoux. via Liverpool during the war. Nelson Monument The Bunker Today – Museum The Nelson Monument is a statue, unveiled in 1813, to commemorate Admiral Horatio Nelson’s victory at the Battle Walk through hidden rooms and discover the stories locked of Trafalgar. It was the earliest public monument in Liverpool in the wartime bunker that protected the tactics and secrets and stands in the courtyard of Exchange Flags. of the British Armed Forces plotting to bulwark the Western Approaches and aid the Allied victory. Today, the wartime bunker is re-open as the Western Approaches Museum and has been restored to exactly how it used to be; it is open to the public as a memorial to those who died to save Britain and the rest of Europe. Visitors take a step back into history in the original building where the battle was fought and won. The Map Room has remained exactly how as it was left when the doors were closed on 15 August 1945. Walk through hidden rooms and discover the stories locked in the wartime bunker that protected the tactics and secrets of the British Armed Forces TIMELINE 1803-8 1864-7 1939 1939-45 1940 1941 1941 1942-45 1945 1954-56 1955 Early 2000s 2007- 2017 1990s 2009 The first Replaced Construction of Battle of the 9 August 7 February Walker/Derby Admiral Sir Max 15 August The underground Horton House The buildings’ 17 OCTOBER Exchange by a French the main building Atlantic which The first German Combined House completed Horton served Western vaults were was completed the site of the names changed Comprehensive Western was built by Renaissance was completed. was the longest bombs land in Operations after a bunker as Commander- Approaches excavated, with bunker was from Derby and refurbishment of Approaches John Foster Sen. building by T H continuous Merseyside. moved to was installed. in-Chief. Command the basement rediscovered and Sefton House both buildings. Museum Wyatt military campaign Exchange Flags. closed. car parks reopened as an to Walker and reopened. in World War II. constructed. attraction. Horton House. Exchange Flags, Liverpool, Merseyside L2 3YL Exchange Flags, Liverpool, Merseyside L2 3YL 8 9 Unrivaled location in Heart of the City Centre 3 6 2 4 L IVERPOOL 11 LOCATIONS 4 1 1 Princes Dock 1 8 2 Museum Of Liverpool 2 4 3 James St Station 1 4 Moorfields Station 3 5 Town Hall 7 2 5 1 9 6 St Paul’s Square 5 7 Liverpool One 5 8 Royal Liver Building 4 5 9 Cunard Building 6 7 10 13 10 Port of Liverpool Building 8 11 Exchange Station 13 10 11 6 12 Mann Island 9 13 India Building 8 14 Royal Albert Dock 12 9 CAFè/DINING 1 Starbucks 2 Costa 3 3 Fazenda, Vincents, Esquires Coffee, Philpotts 10 4 Mowgli 7 5 Gino D’Acampo 8 6 Bacaro 7 Castle St Townhouse 8 San Carlo 9 Restaurant Bar & Grill 12 10 The Alchemist 2 11 Caffè Nero 12 Neighbourhood 13 Piccolino ACCOMMODATION 3 1 Malmaison 2 Crowne Plaza 3 Hilton 4 Raddisson Blu 5 Mercure Atlantic Tower 6 Hard Days Night 7 Ingido 8 Travelodge 9 Aloft 10 easyHotel FITNESS 1 JD Gyms 2 Nourish Boutique Gym 14 3 Signature Fit Club 4 The Yoga Hub 5 White Wolf Yoga Exchange Flags, Liverpool, Merseyside L2 3YL Exchange Flags, Liverpool, Merseyside L2 3YL 10 11 Liverpool is the UK’s fifth largest city and the commercial and Liverpool has world class academic and medical institutions WHY LIVERPOOL? administrative centre of the larger Merseyside. Combined with which underpin its large student population estimated at Greater Manchester the two regions are the driving force of the 50,000 the UKs third largest which coupled with the recent £140 billion North West economy, the UK’s second largest, with increase of inner city living the residential and leisure markets a population of 7 million. The city has witnessed large change have seen both growth and expansion through development / across a number of sectors over the past decade, with over £5 refurbishment across the city region. billion of inward investment delivered through private and public The region enjoys economic diversity with companies ranging sector partnership. This investment has seen output increase from financial and legal sectors, to world renowned bio medical within the City region itself to an estimated £25 billion. Liverpool LIVERPOOL AND THE WIDER REGION IS THE NUMBER ONE research companies and to the continuing success of Jaguar and the wider region is the number one recipient of direct foreign Landover in the automotive industry. The recent opening of the investment in the UK outside of London and the South East. RECIPIENT OF DIRECT FOREIGN INVESTMENT IN THE UK OUTSIDE £300 million Liverpool2 Super Port by Peel Ports will underpin OF LONDON AND THE SOUTH EAST Liverpool’s status as a UNESCO World Heritage Site is a major and assist in economic growth over the short to long term. The draw for tourism which combined with the cities maritime and port is situated to the north of the city and will be able to cater musical links, numerous museums and galleries and with its for 95% of the world’s freight traffic opening up new trade routes sporting heritage attract an estimated £1.3 billion spend by with the Americas and Europe underpinning and expanding the visitors per year. already established maritime shipping sector within the city. The retail heart of the city is the critically acclaimed Liverpool John Lennon International Airport is situated to the south east One a 1.65 million sq ft open air retail led mixed use scheme of Liverpool which combined with the ferry port, mainline train on 42 acre development anchored by John Lewis provides an station and motorway connectivity will continue to underpin the attractive shopping and leisure environment for both domestic wider regions success.