THE CIVIC CENTRE RIVERSIDE / STAFFORD / ST16 3AQ Civic CentreThe RIVERSIDE /STAFFORDST163AQ PROVIDING 55YEARSINCOME PRIME COUNCILLETOPPORTUNITY 2 THE CIVIC CENTRE RIVERSIDE / STAFFORD / ST16 3AQ • • • • • • • Investment Summary UK Giltrates arbitrage overcurrentequivalentterm The initialyieldprovidessignificant of £731,600 perannumreflecting£7.63 psf Rent, meaningtheCouncilpayalowrent The rentisreviewedto73.16% ofMarket next reviewon29thSeptember2023 5 yearlyopenmarketreviewswiththe that providesfor55.6 yearstoexpiry Stafford BoroughCouncilonanFRIlease Entirely lettotheundoubtedcovenantof on theupperfloors and officespacemedicalfacilities sq ftwithA1-A3retailonthegroundfloor The CivicCentreprovidesatotalof95,823 and Waterfront Leisure Schemes adjacent totheRiversideRetail County Council’s headquartersand in thetowncentre,oppositeStaffordshire The CivicCentreisprominentlysituated and istheadministrativecapital Stafford istheCountyTown ofStaffordshire costs of6.75%. assuming usualpurchaser’s a NetInitialYieldof3.50% Thousand Pounds)whichreflects (Nineteen MillionSixHundred Offers inexcessof£19,600,000
3 THE CIVIC CENTRE RIVERSIDE / STAFFORD / ST16 3AQ Liverpool withajourneytimeof59minutes. Birmingham withajourneytimeof32minutesand 17 minutes.Italsoprovidesregulardirectservicesto services toLondon Eustonwithajourneytimeof1hour route betweenLondon andLiverpool,itprovidesdirect 24 milestothesouth.Stafford Station isonthemainline with Manchester, 58milestothenorthandBirmingham junctions 13and14oftheM6motorway.Thelinks communications. Thetowncentreisjust2milesfrom Stafford benefitsfromexcellent roadandtrain surrounding satellitevillages. with awiderpopulationof138,000 including The townhasapopulationof68,472(2011census) Borough Councilheadquartersinthetown. with bothStaffordshire CountyCouncilandStafford Stafford istheadministrativecapitalofStaffordshire 151 milesnorthwestofLondon. of Birmingham,58milessouthManchesterand Town ofStaffordshire. Itislocated24milesnorth benefits ofHS2. will alsoprovidetheopportunity tobroadentheeconomic the HS2lineandWest Coast MainLineatHandsacre work andinvestinthecommitment tothelinkbetween on Stafford’s reputationasanattractive placetolive, The BoroughCouncilisdetermined touseHS2build facilities willsupport6,500newjobsand800homes. connectivity. Newcommercial,businessandleisure growth areadesignedtotakeadvantageofHS2 The Stafford Station GatewayGrowthAreaisamajor to 53minutes. connectivity, reducingthejourneytimetoLondon The developmentofHS2willfurtherimproveStafford’s HS2 Stafford liesintheheartofEnglandandisCounty Location
GLASGO
W EXETER CARDIFF EDINBURGH A518 LIVERPOOL ST DUNDEE CARLISLE M6 AFFORD CASLTE LANCASTER DOXEY 14 BANK MANCHEST BRIS HYDE LEA BIRMINGHAM STAFFORD A5013 TO ABERDEEN
ST BRADFO OKE-ON-T L A34 NEWC A518 ER M6 RD A449 SOUTHAMPT RENT SHEFFIELD ASTLE UPONTYNE CO LEED DERBY VENTRY OX A34 WA S FO BECONSIDE KEFIELD MOSS PIT 13 SUNDERLAND RD ON A513 NO THE CIVIC LEICES YO PORT CENTRE TTINGHAM RK NORTHAMP A34 SMOUTH TER TO ACTON HILL BASWICH N HULL L ONDONONDON A518 PETERBOROUGH BRIGHT CAMBRIDGE A34 ON A513 NORW ICH Gateway Stafford Stafford Stafford Station Situation town centre and along the southern boundary of the property. town centreandalongthesouthernboundaryofproperty. The propertyoverlookstheRiverSow, whichrunsthroughthe The schemeincludesa1,025 spacemulti-storeycarpark. 2018 andprovidesanOdeonLuxe Cinemaandrestaurants. is theWaterfront Leisure Scheme whichwasdevelopedin Primark, RiverIsland,H&MandJDSports.Oppositetheproperty retail accommodationacross17units.Tenants includeM&S, property, developedin2016itprovides100,000 sqftofprime Riverside ShoppingCentreisadjacenttotheeastof Council headofficeand Stafford CombinedCourt. of thetown.NearbybuildingsincludeStaffordshire County Walls. Itislocatedintheretailandadministrativecore in thetowncentreoncornerofBridgeStreet andSouth The propertyoccupiesacentralandprominentlocation CHELL RD SAT NAV:ST16 3AQ TENTERBANKS VICTORIA RD Stafford College TENTERBANKS Guildhall Shopping STAFFORD BRIDGE ST Centre A518
THE CIVIC CENTRE Waterfront Scheme Leisure A449 N WALLS S WALLS Staffordshire Shopping Riverside Riverside Council A34 County Centre
A34 A34
A518 4 THE CIVIC CENTRE RIVERSIDE / STAFFORD / ST16 3AQ elevation, adjacenttotheRiverSow. access totheofficesisalongsouth the RiverSowandprincipalpedestrian The mainentrancetotheofficesfronts and mezzanine. 3 storeys with car parking on the ground 3 storeyswithcarparkingontheground office andmedicalaccommodationacross Bock B,totheeastofsiteprovides office uses. benefit fromopenA1-A3retailandB1 provide smallerself-containedunitswhich supermarket. Ithasnowbeendividedto originally builtforuseinwholeasa upper floors.Thegroundfloorwas accommodation overgroundandfour Block A,tothewestofsiteprovides on eachlevelandacentralstaircase. passenger lifts,maleandfemaletoilets 2 level. Thecentralcorebenefitsfrom provides accesstobothwingsoneach linked byacentralservicecore,which levels ofcarparking.Thetwoblocksare offices andhealthfacilitiesabovetwo and thesecondcomprising3storeysof above groundfloorretailaccommodation blocks, onecomprising4storeysofoffices The propertycomprises2interlinked The Property
5 THE CIVIC CENTRE RIVERSIDE / STAFFORD / ST16 3AQ The siteextendsto1.83acres0.74 hectares. Site Area a breakdownoftheseisdetailedbelow: the Councilaspartofrentreviewand The floorareashavebeenagreedwith Floor Areas Total Upper floors rear area Ground floor part firstfloor Ground and LOCATION
Offices & Offices Facilities Medical Medical USER Retail AREA SQFT 95,823 64,462 27,300 4,061
Title Plan Riverside 6 THE CIVIC CENTRE RIVERSIDE / STAFFORD / ST16 3AQ Freehold. Tenure throughout itsremainingterm. rent andcovenantsinthecurrentlease Borough Council,isresponsibleforthe of ContractwhichmeansthatStafford (Covenants) Act1995.ThisensuresPrivity purpose oftheLandlord andTenant same terms,itisan“old”leaseforthe 1976 leaseandisonsubstantiallythe following anexercise oftheoptionin As thecurrentleasewasenteredinto effectively giving55.6 yearstermcertain. new leaseforatermof29years,thereby require theothertoenterintoafurther for eitherthelandlordortenantto The currentleasealsocontainstheoption commenced on23rdDecember2011. option wasexercised andthecurrentlease lease onsubstantiallythesameterms.The require thetenanttotakeanew35year That leasegavetheLandlord theoptionto year leasefrom23rdDecember1976. The propertywasoriginallyletona35 an effective£7.63 psfoverall. rent is£731,600 perannum,whichreflects 22nd December2046.Thecurrentpassing Borough CouncilonanFRIleaseexpiring The wholepropertyislettoStafford Tenancy
A summaryofthekeyleasetermsissetoutbelow: Alienation Alterations Repair Use Rent Review Rent Renew Option to Term Current Under lettingpermitted subjecttoconditions. the Landlord attheexpenseof theTenant. and responsibleassigneetobe thesatisfactionof Assignment ofthewholeispermitted toarespectable subject toconsentnotbeunreasonably withheld. premises withoutthepriorconsentofLandlord, works orothermaterialchangesadditionstothe The Tenant covenantsnotto carryoutanystructural Fully Repairing andInsuring basement groundandfirstfloors.Withcarparking. Offices, withshowrooms,shopsorofficesonthe of Derbyshirebutexcluding theCityofBirmingham. Warwickshire, County ofStaffordshire andCounty and commercialpositionintheCountyof review datefrombuildingsofasimilarsize,quality is tobetakenwithinthe12monthsbeforerent Rental evidenceregardingthevalueofoffices Rental Value. The Reviewed Rent equals73.16% ofMarket 5 yearlythereafter. First rentreviewon29thSeptember2013andthen Passing rentof£731,600 perannum/£7.63 psf of 29yearstoDecember2075. other toenterintoanewleaseforfurtherterm The landlordorthetenantcaneachrequire 35 yearscommencing23rdDecember2011
Covenant Covenant Subleases andLicenses historically experiencing littlechange. They arelong-term, stableorganisations, can causeinsolvenciesintheprivate sector. affected bythetypeofmarket forces that organisations, theyaresignificantly less credit riskcounterparties.Aspublic sector Local Authorities are regardedasverylow 135,880 (mid-2018estimate). numerous villages.Ithasapopulation Stafford, thesmallertown ofStone and in Staffordshire. TheBorough includes government districtwithboroughstatus Stafford BoroughCouncil isalocal Subleases detailedbelow: subsidises theCouncil’s propertycosts. of theofficespace.Theseprovideacurrentincome£466,826perannumwhich Stafford BoroughCouncilsubletthegroundfloorretailandleisureunitsaswellsome Block /Floor Third floor Block A/ Second floor Block A/ Ground floor Block A/ Third floor Block B/ Third floor Second and Block B/ Fourth floor Block A/
12,432 12,432 4,036 1,328 1,328 7,782 Area Area 7,212 sq ft sq ft 761 761
Trent Partnership NHSTrust Trent Partnership NHSTrust Staffordshire andStoke-on- Staffordshire andStoke-on- Revolution BarsLimited Support Staffordshire Support Staffordshire County Council County Council Staffordshire Staffordshire Staffordshire Staffordshire Tenant
of CentralGovernment followed byCouncilsandsupport financial managementprocesses due tothelegislativeframework,robust Local Authority creditstrengthishigh set adeficitbudget. to setabalancedbudget-itisillegal Local Authorities arealsolegallyobliged 01/04/2020 19/08/2016 06/10/2017 23/01/2017 26/11/2013 26/11/2013 Lease Lease Start
25 years 25 years 25 years 10 years 4 years Lease Lease years 12.62 Term
Per Annum £196,350 £100,726 £24,000 £70,000 £63,750 £12,000
7 THE CIVIC CENTRE RIVERSIDE / STAFFORD / ST16 3AQ 0.4% U.K. 50Year Gilt • • • • Source: Marketwatch.com • • Investment Rationale Mar 20 50 yearUKGiltiscurrentlyyielding0.4% over currentUKGiltrates,theequivalent Initial yieldprovidessignificantarbitrage for highervalueuses Council’s accommodationandtoprovide building andthesitetoimprove is thepotentialtoredevelopboth In conjunctionwiththeCouncilthere annum towardstheCouncil’s outgoings Underlettings provide£466,826per a lowergearedrent Rent, meaningtheCouncilbenefitfrom The rentisreviewedto73.16% ofMarket Borough Council the undoubtedcovenantofStafford 55 years of income secured against 55 yearsofincomesecuredagainst Key strategicsiteinStafford towncentre Apr 20 May 20 Jun 20
0.0% 0.5% 0.75% 1.00% 1.25%
A518 STAFFORD STATION A518 LEISURE SCHEME WATERFRONT WATERFRONT A518 CAR PARK THE CIVIC CENTRE COUNTY COUNCIL COUNTY COUNCIL STAFFORD SHOPPING CENTRE RIVERSIDE A34 8 THE CIVIC CENTRE RIVERSIDE / STAFFORD / ST16 3AQ is availableuponrequest. Access toasecureonlinedataroom Data Room Terms areagreed. with HMRCregulationswhenHeadsof provide AMLinformationinaccordance A successfulbidderwillberequiredto Anti MoneyLaundering treated asaTOGC. it isenvisagedthatthetransactionwillbe The propertyiselectedforVAT andassuch VAT Available onrequest. EPC costs of6.75%. assuming usualpurchaser’s a Thousand Pounds) whichreflects (Nineteen MillionSixHundred offers inexcess of£19,600,000 We areinstructedtoseek Pricing Net InitialYieldof3.50%
+44 (0)2074098725• Simon Hope [email protected] +44(0) 1216348447• Matt Jenns [email protected] +44(0) 1212336456• Ben Wisher [email protected] +44(0) 2039096808• Huw Holman [email protected] +44(0) 2078611222•7957342285 Shaun Roy More Information names. SubjecttoContract:June 2020. carve-design.co.uk14709/10 is 55BakerStreet, London W1U8AN,where youmaylookatalistofmembers’ registered inEnglandwith numberOC305934.Ourregisteredoffice change withoutnotice.Knight FrankLLPisalimitedliabilitypartnership information iscorrect.4.VAT: TheVAT positionrelatingtothepropertymay or inotherwaysthatthesemattershavebeenproperlydealt withandthatall other consenthasbeenobtained.Abuyerorlesseemust findoutbyinspection property doesnotmeanthatanynecessaryplanning,building regulationsor 3. Regulations etc:Anyreferencetoalterationsto,oruseof, anypart ofthe were taken.Areas,measurementsanddistancesgivenare approximate only. show onlycertainpartsofthepropertyastheyappeared atthetimethey on thepartofagents,seller(s)orlessor(s).2.Photosetc: Thephotographs property, andaccordinglyanyinformationgivenisentirely withoutresponsibility nor anyjointagenthasauthoritytomakerepresentations aboutthe accurate abouttheproperty,itsconditionorvalue.Neither KnightFrankLLP particulars orbywordofmouthinwriting(“information”)asbeingfactually nor partofone.You shouldnotrelyonstatementsbyKnightFrankLLPinthe Important Notice:1.Particulars: Theseparticularsarenotanofferorcontract, [email protected] [email protected]
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