Thecivic Centre
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The Civic Centre RIVERSIDE / STAFFORD / ST16 3AQ PRIME COUNCIL LET OPPORTUNITY PROVIDING 55 YEARS INCOME ST16 3AQ ST16 3AQ / STAFFORD / THE CIVIC CENTRE RIVERSIDE Investment Summary • Stafford is the County Town of Staffordshire and is the administrative capital • The Civic Centre is prominently situated 2 in the town centre, opposite Staffordshire County Council’s headquarters and adjacent to to the Riverside Retail and Waterfront Leisure Schemes • The Civic Centre provides a total of 95,823 sq ft with A1-A3 retail on the ground floor and office space and medical facilities on the upper floors • Entirely let to the undoubted covenant of Stafford Borough Council on an FRI lease that provides for 55.6 years to expiry • 5 yearly open market reviews with the next review on 29th September 2023 • The rent is reviewed to 73.16% of Market Rent, meaning the Council pay a low rent of £731,600 per annum reflecting £7.63 psf • The initial yield provides significant arbitrage over current equivalent term UK Gilt rates Offers in excess of £19,600,000 ST16 3AQ ST16 3AQ / (Nineteen Million Six Hundred Thousand Pounds) which reflects a Net Initial Yield of 3.50% assuming usual purchaser’s costs of 6.75%. STAFFORD / THE CIVIC CENTRE RIVERSIDE ABERDEEN DUNDEE EDINBURGH GLASGOW NEWCASTLE UPON TYNE CARLISLE SUNDERLAND LANCASTER YORK LEEDS Location BRADFORD HULL Situation WAKEFIELD MANCHESTER Stafford lies in the heart of England and is the County The property occupies a central and prominent location LIVERPOOL SHEFFIELD Town of Staffordshire. It is located 24 miles north in the town centre on the corner of Bridge Street and South of Birmingham, 58 miles south of Manchester and Walls. It is located in the retail and administrative core 151 miles northwest of London. STOKE-ON-TRENT of the town. Nearby buildings include Staffordshire County 3 NOTTINGHAM DERBY Council head office and Stafford Combined Court. Stafford is the administrative capital of Staffordshire STAFFORD with both Staffordshire County Council and Stafford LEICESTER NORWICH Riverside Shopping Centre is adjacent to the east of the Borough Council headquarters in the town. PETERBOROUGH property, developed in 2016 it provides 100,000 sq ft of prime The town has a population of 68,472 (2011 census) BIRMINGHAM retail accommodation across 17 units. Tenants include M&S, COVENTRY NORTHAMPTON with a wider population of 138,000 including CAMBRIDGE Primark, River Island, H&M and JD Sports. Opposite the property surrounding satellite villages. is the Waterfront Leisure Scheme which was developed in 2018 and provides an Odeon Luxe Cinema and restaurants. Stafford benefits from excellent road and train The scheme includes a 1,025 space multi-storey car park. communications. The town centre is just 2 miles from OXFORD junctions 13 and 14 of the M6 motorway. The M6 links The property overlooks the River Sow, which runs through the with Manchester, 58 miles to the north and Birmingham town centre and along the southern boundary of the property. 24 miles to the south. Stafford Station is on the mainline CARDIFF BRISTOL LONDOONDONN route between London and Liverpool, it provides direct services to London Euston with a journey time of 1 hour 17 minutes. It also provides regular direct services to Birmingham with a journey time of 32 minutes and Liverpool with a journey time of 59 minutes. SOUTHAMPTON PORTSMOUTH BRIGHTON EXETER 14 A34 HS2 A5013 A513 A34 The development of HS2 will further improve Stafford’s A518 DOXEY CHELL RD connectivity, reducing the journey time to London BECONSIDE Guildhall Shopping Centre N WALLS ST16 3AQ ST16 3AQ to 53 minutes. A34 / M6 STAFFORD THE CIVIC STAFFORD The Stafford Station Gateway Growth Area is a major CENTRE Stafford College CASLTE A518 growth area designed to take advantage of HS2 BANK BASWICH TENTERBANKS THE CIVIC Staffordshire A518 connectivity. New commercial, business and leisure County A34 CENTRE Council facilities will support 6,500 new jobs and 800 new homes. Riverside A34 TENTERBANKS Shopping A449 A513 Centre A518 Stafford S WALLS STAFFORD The Borough Council is determined to use HS2 to build Station BRIDGE ST Waterfront / Leisure on Stafford’s reputation as an attractive place to live, VICTORIA RD Scheme work and invest in and the commitment to the link between M6 MOSS PIT A34 the HS2 line and the West Coast Main Line at Handsacre HYDE LEA Stafford Gateway A518 will also provide the opportunity to broaden the economic ACTON HILL benefits of HS2. THE CIVIC CENTRE RIVERSIDE 13 SAT NAV: ST16 3AQ A449 A34 The Property The property comprises 2 interlinked blocks, one comprising 4 storeys of offices above ground floor retail accommodation 4 and the second comprising 3 storeys of offices and health facilities above two levels of car parking. The two blocks are linked by a central service core, which provides access to both wings on each level. The central core benefits from 2 passenger lifts, male and female toilets on each level and a central staircase. Block A, to the west of the site provides accommodation over ground and four upper floors. The ground floor was originally built for use in whole as a supermarket. It has now been divided to provide smaller self-contained units which benefit from open A1-A3 retail and B1 office uses. Bock B, to the east of of the site provides office and medical accommodation across 3 storeys with car parking on the ground and mezzanine. The main entrance to the offices fronts ST16 3AQ ST16 3AQ the River Sow and the principal pedestrian / access to the offices is along the south elevation, adjacent to the River Sow. STAFFORD / THE CIVIC CENTRE RIVERSIDE Floor Areas Title Plan The floor areas have been agreed with the Council as part of the rent review and a breakdown of these is detailed below: 5 LOCATION USER AREA SQ FT Ground and part first floor Retail 27,300 Ground floor rear area 4,061 Offices & Upper floors Medical 64,462 Facilities Total 95,823 Site Area Riverside The site extends to 1.83 acres 0.74 hectares. ST16 3AQ ST16 3AQ / STAFFORD / THE CIVIC CENTRE RIVERSIDE Tenancy Subleases and Licenses A summary of the key lease terms is set out below: Stafford Borough Council sublet the ground floor retail and leisure units as well as some of the office space. These provide a current income of £466,826 per annum which Current subsidises the Council’s property costs. 35 years commencing 23rd December 2011 6 Term Subleases detailed below: The whole property is let to Stafford Borough Council on an FRI lease expiring The landlord or the tenant can each require the Area Lease Lease Option to Block / Floor Tenant Per Annum 22nd December 2046. The current passing other to enter into a new lease for a further term sq ft Start Term Renew rent is £731,600 per annum, which reflects of 29 years to December 2075. Block A / an effective £7.63 psf overall. 7,212 Revolution Bars Limited 23/01/2017 25 years £70,000 Ground floor The property was originally let on a 35 Rent Passing rent of £731,600 per annum / £7.63 psf Block A / Staffordshire 12.62 year lease from 23rd December 1976. 4,036 19/08/2016 £63,750 Second floor County Council years That lease gave the Landlord the option to First rent review on 29th September 2013 and then Block A / Staffordshire and Stoke-on- require the tenant to take a new 35 year 5 yearly thereafter. 1,328 26/11/2013 10 years £24,000 Third floor Trent Partnership NHS Trust lease on substantially the same terms. The The Reviewed Rent equals 73.16% of Market option was exercised and the current lease Block A / Staffordshire Rental Value. 12,432 06/10/2017 25 years £196,350 commenced on 23rd December 2011. Fourth floor County Council Rent Review Rental evidence regarding the value of the offices The current lease also contains the option is to be taken within the 12 months before the rent Block B / Staffordshire and Stoke-on- review date from buildings of a similar size, quality Second and 7,782 26/11/2013 25 years £100,726 for either the landlord or the tenant to Trent Partnership NHS Trust require the other to enter into a further and commercial position in the County of Third floor new lease for a term of 29 years, thereby Warwickshire, County of Staffordshire and County Block B / of Derbyshire but excluding the City of Birmingham. 761 Support Staffordshire 01/04/2020 4 years £12,000 effectively giving 55.6 years term certain. Third floor As the current lease was entered into Offices, with showrooms, shops or offices on the Use following an exercise of the option in the basement ground and first floors. With car parking. 1976 lease and is on substantially the Covenant same terms, it is an “old” lease for the ST16 3AQ ST16 3AQ Repair Fully Repairing and Insuring / purpose of the Landlord and Tenant Stafford Borough Council is a local Local Authorities are also legally obliged (Covenants) Act 1995. This ensures Privity government district with borough status to set a balanced budget - it is illegal to of Contract which means that Stafford The Tenant covenants not to carry out any structural in Staffordshire. The Borough includes set a deficit budget. Borough Council, is responsible for the works or other material changes or additions to the Stafford, the smaller town of Stone and Alterations Local Authority credit strength is high rent and covenants in the current lease premises without the prior consent of the Landlord, numerous villages. It has a population due to the legislative framework, robust throughout its remaining term.