Multi Let Highly Reversionary Cbd Office Investment

On behalf of Jolivet Group, Guernsey www.jpmrealestate.co.uk

MULTI LET HIGHLY REVERSIONARY CBD OFFICE INVESTMENT

No1 Tithebarn Street Liverpool L2 2QP MULTI LET REVERSIONARY CBD OFFICE INVESTMENT

INVESTMENT SUMMARY n Multi let office investment of 113,554 sq ft n Situated above Moorfield’s train station in Liverpool’s Central Business District n Extensive refurbishment to the majority of the building including extended and re-modelled reception in 2010 n Flexible floor plates from c. 15,000 sq ft allowing sub division n Current passing rental of £682,182.50 pa n Highly reversionary with 41,957 sq ft vacant n ERV in the order of £1,135,730 pa n Offer in excess of £8,000,000 (Eight Million Pounds) reflecting a8.06% initial yield and an ultimate reversionary yield of 13.42%. n Low capital value of only £74.54 psf MULTI LET REVERSIONARY CBD OFFICE INVESTMENT

7 33 25 8 40 28 9 19 6 43 4 26 29 20 5 32 2 14 21 30 10 22 18 11 34 38 16 42 23

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Roads Landmark buildings Hotels Leisure and retail Public Transport

1 Tithebarn Street 6 India Building 12 The Plaza 18 Crowne Plaza 25 Liverpool One 33 Mersey Ferries 39 Bus Interchange 2 Castle Street 7 Port of Liverpool Building 13 Exchange Station 19 62 Castle Street 26 San Carlo 34 Crowne Plaza Health Club 40 James Street Merseyrail Station 3 Old Hall Street 8 Cunard Building 14 The Town Hall 20 Hard Days Night Hotel 27 Albert Dock 35 Panoramic Restaurant 41 Moorfields Merseyrail Station 4 The Strand 9 The Royal Liver Building 15 Daily Post & Echo 21 The Racquet Club 28 Simply Heathcotes 36 Filini Restaurant 42 Queensway Tunnel exit 5 Water Street 10 20 Chapel Street 16 The Capital 22 Thistle Hotel 29 Restaurant Bar and Grill 37 Echo Arena and Convention 43 New Cruise Liner terminal 11 Exchange Flags 17 St Paul’s Square 23 Malmaison 30 Western Approaches Centre 24 SAS Radisson 31 Starbucks 38 Met Quarter 32 Piccolino Restaurant 14 13 12 BLACKPOOL A59 32 3 A671 M55 1 4 11 M6 10 A6 A666 9 A59 8 Burnley A583 M65 31 7 Preston A677 6 Accrington Blackburn 30 A646 A59 A582 A53 5 A646 MULTI LET REVERSIONARY29 CBD OFFICE INVESTMENT 29 3 4 Halifax 1 M65 A56 Rawtenstall Leyland 28 Darwen

A644 A565 8

Southport M6 Chorley 1 LOCATION A59 A58 Huddersﬁeld A570 M61 M66 A629 21 A58 Bolton Rochdale Liverpool is the fifth largest urban centre in A5209 27 2 A58 20 A58 3 Ormskirk 6 A676 19 the UK with a population of circa 1.5million, A565 A666 A56 M62 5 Skelmersdale Wigan Oldham more than 38,000 businesses and an economic 3 4 4 M61 19 A59 5 26 3 17 20 M58 16 21 output of £25billion per annum. It is an M6 A576 22 1 A627 25 A570 A580 integral part of the thriving North West 7 A58 Salford A628 24 A580 12 M602 1 A6010 A5036 3 23 economy, which is the second-largest in the 6 11 A580 23 4 10 A5053 St Helens Manchester 24 3 UK after London and the South East, with a A565 M57 9 M62 A5103 3 A58 8 Wallasey 22 A57 7 population of 7 million, more than 250,000 A554 102 11 A5058 10 6 A6 25 A57 21A 26 1 9 5 A34 27 5 M62 A56 M60 businesses and an economic output of 6 7 A553 1 A579 4 3 2 Stockport 2 Liverpool A57 21 3 2 1 Warrington Altrincham £120billion per annum. Birkenhead A5300 4 3 5 A41 20 M56 8 7 6 PRESTATYN Bromborough A561 Widnes 9 The city is one of the UK’s fastest growing economic regions A56 Manchester A6 LLANDUDNO 4 Airport River Mersey 10 A523 and is the principal commercial and administrative centre for M6 RHYL Liverpool A557 11 M53 Merseyside. The city has undergone a remarkable renaissance COLWYN BAY John Lennon 12 19 5 6 Airport A34 A55 RHUDDLAN A5151 7 over the past 10 years with over £5billion of inward investment A533 A540 8 A547 A525 A55 Hollywell 9 M56 A556 A537 delivered through private and public sector partnership. Further A55 A550 Ellesmere A623 Port A56 14 investment such as ‘Liverpool Waters’ and the continuing bi- A548 ST. ASAPH 10 A548 A49 A537 11 15 Macclesﬁeld annual International Festival of Business are expected to continue A525 M6 A537 A5117 A41 A473 A541 A548 A5026 the success of the city.A6 In 2008, Grosvenor delivered the renowned M53 A548 A5116 A556 A34 Liverpool One retail and leisure development. 12 A54 A533 A494 A51 18 A544 Chester A513 B5129 A54 DENBIGH A49 Middlewich TheA53 city is home to a number of international and national A543 A549 A55 Congleton A523 businesses such as Jaguar Land Rover, Santander, Royal Sun A525 17 Alliance and QVC. Many large public sector organisations also have A41 A50 a presence in the city including HMRC and Customs and Excise. A34 A51 M6 A530 Merseyside has established itself as one of the UK’s main contact ONE OF A534 Alsager Crewe centre locations for companies such as HSBC and BT. A534 A527 THE UK’S A534 A53 A500 16 A49 Nantwich A500 The Port of Liverpool is one of the UK’s busiest container ports Wrexham handling 700,000 containers per year. The new deep water port at FASTEST A41 A520 A34 Liverpool2 will increase its capacity to accommodate the larger A51 Newcastle- Stoke GROWING Under-Lyme 0n-Trent Post-Panamax containers; the only other ports capable of handling such vessels are Southampton and Felixstowe. A525

15 ECONOMIC A50 Whitechurch A51 REGIONS A34 A520 A53

Market A519 Stone Drayton Yarnﬁeld A5013

A34 A51 A518

A41 A519 14 Stafford B5405 A518 MULTI LET REVERSIONARY CBD OFFICE INVESTMENT

COMMUNICATIONS Liverpool is located 212 miles (340 km) north west of London, 98 miles (157 km) north west of Birmingham and 32 miles (52 km) to the west of Manchester.

The city has excellent road communications being served by the Mersey Ferries operate direct cross-river services 7 days a week M62, M57, and M58 which provide easy access to the M6 which is between the Pier Head and Seacombe, Wirral with a journey time of approximately 17 miles to the east. 10 minutes. P&O and Norfolkine Irish Sea also offer daily services to Dublin, Belfast and the Isle of Man. In addition, Liverpool is Liverpool Lime Street provides regular, direct rail services to establishing itself as a major cruise liner terminal now offering London Euston with approximate journey times of 2 hours 10 turnaround services. minutes. Journey times to Manchester are as low as 35 minutes. Liverpool John Lennon Airport is located 6 miles to the south east Liverpool has an excellent, electrified suburban rail network of the city centre. The airport is one of Europe’s fastest growing including an underground loop linking the stations at James Street, and now serves 60 destinations and 5.3million passengers annually. Moorfields and Central to Lime Street. The Old Hall Street entrance Manchester Airport (situated 34 miles to the east) is the UK’s third to Moorfields station is under No. 1 Tithebarn. largest serving 200 destinations and 19 million passengers annually. MULTI LET REVERSIONARY CBD OFFICE INVESTMENT

SITUATION No. 1 Tithebarn is an imposing building on the

A Y W corner of Tithebarn Street and Old Hall Street S Y N G A K I S W N G K I within Liverpool’s Central Business District.

St Paul’s Square, which is Liverpool’s principal new office

T development, is situated 200m to the north whilst the traditional T R E E D S S L E E office core including Exchange Flags is situated immediately to the south. As such, No. 1 Tithebarn is literally at the heart of E

S Liverpool’s office district. T P A S T L O T L E C L R H E M U R D C H I B E L L R A H W A Y A The building benefits from exceptional access to public transport E T L H A T T L S A T H T T L O with its own entrance to Moorfields station and the full range of D ST PAUL’S E S L E N R T T WALKER ART S R E

R A G T T E GALLERY city centre amenities are available within a few minutes’ walk of

E R S A R W R T P E E EXCHANGE N S T D E D R STATION R E the building. Liverpool ONE and the Waterfront are within 10

E E L I T A N A N B D

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C minutes’ walk. N H

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K THE T M E P CAPITAL O ST GEORGES’S R A O T R N R HALL PRINCES F S S A T E IE DOCK L J D W E DS O E X H E C N M Q T S I 20 E H E A L L

U R A

20 CHAPEL T EXCHANGE N N A S E STREETST L EXCHANGEFLAGS G Y E E T P FLAGS E A S E LIVERPOOL H T R C T LIME STREET S TOWN K STATION HALL O O C METQUARTER SHOPPING CENTRE ST JOHN’S SHOPPING CENTRE S T R T E T H A E W INDIAINDIA ROYAL LIVER ROYAL LIVER S BUILDINGBUILDING S T BUILDINGS T K BUILDING R I C A W S CLAYTON N U N D R SQUARE CUNARDCUNARD B BUILDING ET BUILDING E R T L S E S ) N E QUEEN ELIZABETH II N PORT OF LIVERPOOL M U PORT OF LIVERPOOL A LAW COURTS T BUILDING J Y BUILDING E S R E M T ( T E Y H E A E R T W S S S T R N R E E V E A O U N N Q D A MANN H ISLAND

L G P N I N C A N n Retail District n Central Business District MULTI LET REVERSIONARY CBD OFFICE INVESTMENT

DESCRIPTION The property comprises a six storey building built directly on top of Moorfield’s train station with retail units at ground and mezzanine levels and offices above.

The building is constructed of a concrete frame with concrete panels and a mansard clad roof. The majority of the office accommodation has been comprehensively refurbished with specification including: n Double height contemporary glazed entrance n VAV comfort cooling and ventilation n 150mm metal full access raised floor n Contemporary designed toilets n New perimeter radiator heating n LG3 / LG7 semi recessed lighting to a high speciation n 2,800mm height from raised floors to suspended ceiling n 3 x 13 passenger lift n Goods lift to rear service area n High quality suspended ceilings MULTI LET REVERSIONARY CBD OFFICE INVESTMENT

ACCOMMODATION

The property has been measured in accordance with the RICS Code of Measuring Practice (6 Edition) and offers the following net internal floor areas:

Area (NIA) Demise Sq Ft Sq M Basement 1,241 115.29 Unit 1 GF 1,180 109.62 Unit 1 GF 2,910 270.34 Unit 1 GF 1,600 148.64 Mezzanine 15,453 1,435.61 First Floor 19,403 1,802.58 Second Floor 18,473 1,716.18 Third Floor 15,561 1,445.65 Fourth Floor 14,922 1,386.28 Ground floor plan Fourth floor plan Fifth Floor 15,134 1,405.98 Sixth Floor 7,677 713.21 Totals 113,554 10,549.42 MULTI LET REVERSIONARY CBD OFFICE INVESTMENT

TENANCY SCHEDULE SERVICE CHARGE

The property is multi-let to 10 tenants in accordance accommodation representing 37% of the overall space. All leases are drawn on effective full repairing and with the tenancy schedule below. insuring terms subject to payment of a service charge. The average weighted unexpired lease term is 4.05 years The current service charge budget for the year ending The building produces a total gross income of £682,182.50 to expiry and 3.17 years to earliest termination. 31/12/2015 is £508,674 representing £4.48 psf pa. per annum. There is currently 41,957 sq ft of vacant

Unit Tenant Name Area Lease Lease Expiry Rent £ pa ERV Comments sq ft Start (Breaks) (per sq ft) Unit 1 GF Moorfields Photographic 1,180 10 years from 22/12/2013 £12,500 £12,500 Retail Unit. Occupier interested in taking a further 5 year lease at the Ltd 22/12/2003 (£10.59) (£10.59) same passing rent. Unit 2/3 GF Optimum Coffee Limited 2,910 10 years from 23/07/2019 £34,000 £34,000 Retail Unit. Occupier wishes to extend the lease. t/a Costa Coffee 24/07/2009 (£11.68) (£11.68) Unit 4 GF William Hill Organisation 1,600 20 years from 21/10/2030 £15,000 £15,000 Retail Unit. Limited 22/10/2010 (22/10/2020) (£9.38) (9.38) Mezz Vacant 8,350 £83,500 Requires refurbishment. Potential to extend through removal of (£10.00) redundant staircase. Mezz Tata Consultancy Services 7,10 3 3 years from 22/11/2015 £71,030 £71,030 Service charge cap at £37,646 (£5.30 p.s.f). Worthington Owen in Limited 23/11/2012 (23/11/2014) (£10.00) (£10.00) discussion with tenant over new Lease. 1st Carpenters Limited 19,403 6 years from 31/08/2021 £194,030 £194,030 Landlord has service charge top up to make of £37,629 for the first year (up 01/09/2015 (£10.00) (£10.00) until 30th August 2016). 2nd (Part) Vacant 7,360 £73,600 Requires refurbishment. (£10.00) 2nd (Part) Vacant 11,113 £111,130 Refurbished. (£10.00) 3rd Tata Consultancy Services 15,561 9 years from 22/11/2021 £150,200 £15,5610 Service charge cap at £79,606 (£5.12 p.s.f) Limited 23/11/2012 (23/11/2018) (£9.65) (£10.00) 4th (Part) CSAV Group Agency UK 6,526 2 years from 25/08/2011 £65,000 £65,260 Vacating 30/11/2015. Requires refurbishment. Limited 26/08/2009 (£9.96) (£10.00) 4th (Part) SDV Limited 8,396 5 years from 27/07/2019 £67,168 £83,960 28/07/2014 (£8.00) (£10.00) 5th Vacant 15,134 £15,1340 Requires refurbishment. Has been stripped to shell and a request made to (£10.00) de-list from rating list. 6th Speed Medical Examination 7,677 3 years from 30/11/2017 £65,254.50 £76,770 Rent commencement date 1st December 2015 at £33,267. Rent increases Services Limited 01/12/2014 (30/11/2015) (£8.50) (£10.00) to £65,254.50 on 1st December 2016. Landlord to top up. Basement Galliford Try 1,241 1 year from 31/05/2016 £8,000 £8,000 Store 01/06/2015 (£6.45) (£6.45) Tube Station Network Rail n/a 999 years from 31/12/2975 £0 (Basement) 01/01/1976 Total 113,554 £682,182.50 £1,135,730 MULTI LET REVERSIONARY CBD OFFICE INVESTMENT

TENANT COVENANT

Moorfields Optimum William Hill Organization CSAV Group Agency UK Limited Photographic Coffee Limited Limited Established in 2003, CSVA Group Agency UK Ltd in part of the wider Compañía Sudamericana de Limited Optimum Coffee William Hill Organization Ltd Vapores (CSAV) group of companies, a Chilean shipping company. Founded in 1872, it is one of the Moorfields under a license was incorporated in 1933 and is a oldest shipping companies in the world and currently, one of the largest in Latin America. photographic from Costa Coffee subsidiary of William Hill PLC. The CSAV is a corporation that has been listed on the stock market since 1893. The company offers have been currently operate principal activity of the William transportation services, such as the maritime carriage of liquid and solid bulk cargoes, refrigerated supplying 14 franchised Hill Organization is the operation cargo, cars and heavy equipment. photographic stores across of Licensed Batting Offices. The printing service Merseyside Company is also responsible for to professional serving speciality the employment of the Groups UK For the year ending 31 December 2014, CSAV Group Agency UK Limited had a and amateur coffees. based staff and facilitates financing tangible net worth of £702,000. photographers. activities in relation the Groups Moorfields was Costa Coffee is the external borrowings. founded 30 largest and fastest years ago arising growing coffee Carpenters Limited SDV Limited Speed Medical Examination from a family shop chain in the For the year ending 31 Services Limited Carpenters Limited SDV was founded in 1988 photographic UK and in 2010 December 2014, William Hill are a firm of solicitors and is a global leader in Established in 1998 by a Lancashire business was voted the Organization Ltd recorded a providing claims international transport based GP, Speed Medical was established in nation’s favourite profit of £284.209.000. services to the insurance & logistics. They are a specifically set up to deliver the the 1920’s coffee shop. It was acquired industry and specialist tier-one supply chain highest level of reporting quality by Whitbread personal injury advice. partner and one of the and service, in the most efficient For the year in 1995, since Tata Consultancy Services They currently operate top 10 transport and manner. then it has grown from five offices across logistics companies in ending 31 Limited As one of the UK’s largest medical to over 1,700 the county. the world with the largest August 2014, reporting firms, in terms of volume, stores across 28 Established in 1968, Tata Consultancy integrated logistics They are part of the business has grown organically Moorfields countries with Services (TCS) is part of the TATA network in Africa. The a larger firm and to provide solicitors and insurers Photographic over 1,300 in the Group, one of India’s largest parent company is SDV further information with an unrivalled level of product Ltd had a UK. industrial conglomerates and most Ligistique. The Company can be found at www. tailoring and industry leading tangible net respected brands. TCS is a global employs over 20,000 staff carpenters-law.co.uk standards of service. worth of leader in IT services, digital and and has 612 offices in 102 £120,423. For the year business solutions that partners with countries. ending 31 its clients to simplify, strengthen A guarantee has For the year ending 31 August 2014, and transform their businesses. Tata been provided by For the year ending May 2014, Speed Medical Optimum employs over 350,000 staff. two partners of the 31 December 2013, Examination Services Ltd Coffee Ltd firm until net assets SDV (UK) Ltd had a reported a turnover of had a tangible For the year ending 31 August are in excess of £25 tangible net worth of £33,408,434 which showed a net worth of 2014, TCS Ltd had shareholder million. £100,000 £78,000. gross profit of £12,192,524. £143,792 funds of £4.48 billion. rent deposit held MULTI LET REVERSIONARY CBD OFFICE INVESTMENT

LIVERPOOL OFFICE LIVERPOOL OFFICE OCCUPATIONAL MARKET INVESTMENT MARKET Take-up during 2014 was 376,232 sq. ft. which was 21% There are a number of office investments currently in the market, below we detail the most pertinent along with their capital vaules. No 1 Tithebarn offers excellent higher than in 2013 and substantially higher than the 5-year value at a low capital value of only £74.54. average. Moreover, the market was significantly more active with 50% more transactions during 2014 than in 2013. Property Size sq ft Date Price Comments (£psf) Take-up for H1 2015 was 125,195 sq. ft. and we anticipate that take-up for the year 5 Temple Square, 40,736 August 2015 5,675,000 Fully let to four tenants. will be circa 250,000 sq. ft. Whilst this total is superficially disappointing, the Temple Street (115) Floor plates of c. 6,000 sq ft. reason for this is the shortage of large deals over 20,000 sq. ft. In reality, the market Cap val excludes separate 51 is stronger than it has been since 2007 which is supported by the fact that there will space car park. be more transactions in 2015 than in any year since 2007. Regian House, 80,833 Exchanged C. 7,900,000 Multi let office with floor Exchange Street (97.73) plates from c. 40,000 sq ft The total office stock within the CBD is c.7.1million sq. ft.; a decrease of almost with c. 50% vacant. Single let 500,000 sq. ft. since 2013. The level of vacancy is currently c.2.1million sq. ft. with under 6 years unexpired. (down from c.2.4million sq. ft. in 2012) but this is a misleading statistic as a large Federation House, 21,119 Marketing Q. 2,250,000 Multi let offices above retail proportion of this stock is of such poor quality that it is unlikely to be let as offices Hope Street (106) with c 4,000 sq ft floor plates. again. We anticipate the supply figures to drop significantly in 2015 and over the Fully let. coming years as more buildings are converted to alternative uses and there will be a Graeme House, 86,567 Marketing Q. 8,000,000 Multi let office built in the very limited supply of new-build accommodation. Derby Square (92.42) 1970s with c. 11,500 sq ft with c. 10% vacant. Headline rents have remained firm since 2014 and there is increasing evidence of No 1 Union Court, 36,050 Under Offer C. 4,200,000 Multi let office above retail rents increasing at the best buildings (No. 1 Mann Island, Royal Liver Building and Cook Street (116.50) with floor plates of c. 5,500 Exchange Flags). Inducements remain stubborn at circa 40% of the headline rent sq ft. Fully let. but, again, there is increasing evidence of inducements eroding. We anticipate terms to improve over the next 12 months.

Property Tenant Size Date Rent £pa Comments sq ft (£psf) 5 St Paul’s Mann Island 11,044 October £15.00 10 year Lease with 5 year break. Square Finance 2015 The NHS 33,340 September £13.00 6 year Lease. Department 2015 4 St Paul’s Search 5,426 September £18.50 10 year Lease with 5 year break. Square Recruitment 2015 20 Chapel St Auto Networks 6,199 July 2015 £16.50 10 year Lease with 5 year break. Graeme New College 6,047 July 2015 £12.50 5 year Lease with 3 year break. Graeme House Regian House No. 1 Union Court House Manchester MULTI LET REVERSIONARY CBD OFFICE INVESTMENT

PROPOSAL We are instructed to seek offers in excess of £8,000,000 (Eight Million Pounds).

A sale at the above level represents a initial yield of 8.06% assuming usual purchasers costs at 5.80%.

Assuming our opinion of the ERV, once fully let the property produces a very attractive reversionary yield of 13.42% NI.

A sale at the above level provides a low capital value of £74.54 per sq ft. FURTHER INFORMATION

Mark Worthington E: [email protected] T: 0151 363 3878

TENURE VA T Andrew Owen E: [email protected] The property is held freehold. We understand that the property has been elected T: 0151 363 3877 for VAT. As such, it is anticipated that the sale will be handed as a transfer of a going concern (TOGC). David Winterbottom EPC E: [email protected] T: 0161 956 4103 The building has an EPC rating of C-73 and the certificate is available upon request. Gurminder Manak E: [email protected] gva.co.uk /9333 T: 0161 956 4105 0161 834 7187

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. www.richardbarber.co.uk