Exchange Building | 1 Exchange Building Quayside Newcastle Upon Tyne NE1 3AE Prime freehold hotel and leisure investment Exchange Building | 2 Investment Summary Prime City Centre Mixed Use Investment Freehold 98,803 sq ft Let against the secure covenants of Premier Inn, Bar 38 (Spirit Group) and Slug & lettuce Grade 2 listed £1,046,295 per annum Seeking offers in excess of £20,000,000 which reflects a net initial yield of 4.9% Exchange Building | 3 TYNE BRIDGE RIVER TYNE SAGE GATESHEAD Exchange Building | 4 Location Newcastle is the commercial and administrative capital of the North East with a population of 280,200 and some 43,000 students across the 2 Universities in the City (University of Newcastle and Northumbria University). Newcastle is approximately 286 miles north of London, 95 miles north of Leeds, 39 miles from Middlesbrough and 14 miles north west of Sunderland. The City is very well served with public transport with a direct train to London’s King Cross (2 hours and 50 minutes) and Edinburgh (1 hour 30 mins). The Tyne and Wear metro system runs throughout Tyneside providing access to Newcastle Airport, Tynemouth, Whitley Bay, Gateshead and South Shields The City Centre has an extensive retail provision of nearly 2.2 million square feet with 2 major shopping centres being MetroCentre and Eldon Square Shopping Centre. Newcastle is ranked 6th out of the top 100 PROMIS centres in both spending available and the number of retailers. OAD D R DYFOR Exchange Building | 5 SAN RI C H AD ET AR O NEWCASTLE STRE R ICK DS WARW A UNIVERSITY D O I N R OA RO O R T AD H IC T Situation R V O N N E CE T PL A E RY’S A ST MA NORTHUMBRIA U ST THOM E Q UNIVERSITY GR Haymarket NEWCASTLE A 8 S’ 1 NEWCASTLE ST ST 3 CITY CAMPUS RE 1 E B CITY HALL O LEAZES PARK T D D A L R EA T ST B Z The property is adjacent to the historic TyneA ERS R R EE R A C T T Bridge occupying a prominent position on K ERRA RO AD the Quayside overlooking the River Tyne. CE ST. JAMES’ PARK A The fabric of the surrounding areas has been 189 E AC enhanced dramatically over the last 30 years PL RY ER OLD ELDON with the redevelopments of East Quayside and WB P A193 I W STRA SQUARE L EL G BLACKET R LI T ST I Manors Trinity Gardens. St James M M N G T S T E Monument O T E R N NELS A167 R E The area is very well populated with bars, S T O E TR S N T ST EE E T restaurants, nightclubs and hotels but is also T A GRAINGER G R WG MARKET a thriving business location with companies ST E E Y N THE GATE S ELL such as Bond Dickinson, RBS, Barclays Bank, T MANORS R OW E E ST T Aecorn, The Crown Prosecution Service and E G ID Maersk Shipping all having offices there. R VD B H BL B IG G G I M A H RK MES’ E T JA WE STG 6 ATE 18 SUMMERHILL ST RO O2 ACADEMY AD A PARK NEWCASTLE Exchange Building S T T NI A167M S W E C O H E ST D O G O I L S ET AT L Y R RE E AS A E E ST R QU DISCOVERY T LL Central O BALTIC I AD ’ A NEV MUSEUM ST CENTRE FOR W NEWCASTLE NEWCASTLE CONTEMPORARY CASTLE NEWCASTLE CENTRAL ILL ART H CITY MARINA ND TY A S NE TIMES ST B H RIVERSIDE R SQUARE RT NEWCASTLE ID SAGE FO G E GATESHEAD E S O L C GATESHEAD COLLEGE YNE RIVER T Exchange Building | 6 Description Exchange Buildings is a Grade 2 listed building built in 1866 of ashlar sandstone construction. The upper floors provide 152 bedroom hotel with 32 car parking spaces at basement level whilst the ground floor comprises the hotel reception and 2 bar / restaurants. The Slug & Lettuce occupies the front section of the property with fantastic views over the river. Ancillary storage and kitchen facilities are in the basement. The bar has been substantially refurbished. Bar 38 is a popular nightclub fronting Quay Street which is popular with A3 including the Bridge Tavern and Micro Brewery. Kitchen, cellar and staff areas are situated at ground floor level. Exchange Building | 7 Exchange Building | 8 The Hotel Bar 38 Slug & Lettuce The hotel comprises some 82,292 sq ft and is leased to Premier Inn The ground floor of the property is let to Spirit The Stonegate Pub Company Ltd t/a Slug Hotels Limited (t/a Premier Inn) and is arranged over ground and five Group Retail Ltd on assignment from Scottish and Lettuce occupy the ground and lower upper floors around a central courtyard. The hotel has the following & Newcastle Ltd (t/a Bar 38) and is accessed ground floor of the property accessed via the amenities: via Lombard Street. The bar which has been Quayside entrance of the property. The Slug refurbished to a high standard is extremely and Lettuce benefits from views over the River 32 space basement car park popular with Newcastle’s student population. Tyne and has the benefit of outdoor seating. 2 x 10 person passenger lift and 1 x 4 person passenger lift 3 meeting / conference rooms with capacity for 50 delegates Fully licensed on site bar and Thyme restaurant Exchange Building | 9 Exchange Building | 10 Tenancy Schedule Tenant Lease Unexpired Rent Areas Areas Review Term (per annum) (sq ft) (sq m) Premier Inn Hotels Ltd 35 years from 01.08.1999 17 years £756, 295 82,292 7,645 August 2019 and then 5 yearly Stonegate Pub Company Ltd 25 years from 29.03.2000 plus 24 years £110,000 GF 4,510 GF 419 March 2020 and then 5 yearly reversionary lease expiring B 2,365 B 220 upward only 28.03.2041 Spirit Group Retail Ltd 35 years from 01.08.99 17 years £180,000 9,636 August 2019 and then 5 yearly Covenants Premier Inn Hotels Ltd is part of the Whitbread Group which has built Slug & lettuce Pub Company Limited is Spirit Group Retail Ltd was acquired on 23rd some of the UK’s most successful hospitality brands including Premier owned by Stonegate Pub Company which June 2015. No turnover or profit figures have Inn, Costa, Beefeater and Brewers Fayre. owns and operates in excess of 500 pubs been disclosed but at the balance sheet date and bars throughout the UK and is the fourth (1st May 2016) the company had net assets of Turnover for the year ending 2016 was £743.2m (2015 - £374.5m) with largest managed pub operator in the UK. £964,705,000 net profits of £255.4m (2015 - £88.6m). Occupancy was 80.2% Turnover for year ending 2015 was £561.6m (2015 - £557.6m) with pre-tax profits of £8.37m (2015 - £6.9m) Exchange Building | 11 1 to 1 0 1 1 1 1 rn co er rk p 9 s a p t r r i P Pe u a r o (P t a 2 C C 1 S 1 B 0 e 1 1 R 5 9 g r 4 t o O t o PH 8 o 3 7 e 1 A Coronation 2 Tenure 9 G 1 D 8 G Buildings 1 B A 3 9 A lu 7 R Baltic L 6 IL 2 n e T H C c 5 H Live Works Chamber Akenside 1 DE 4 o h SI u o 1 N r r t T E t o r 7 7 House K 2 4 in A l 23 i PH 3 B ra ty 9 F d o 1 t C e s t r o h h e t 3 a b 25 a Cale C m r ha e C 1 PH Cross 2 C to 2 1 9 7 9 u 3 3 1 1 P s 6 5 1 lu t (site of) 7 K m o 1 IN m m 3 e G r 3 5 H 1 1 C S h o 1 1 a 6 T T u Freehold. r R e K h s r e E in e 2 T E e E 1 g 7 E 6 T s 4 I 9 QU R n 3 5 E T H EN S F Broadgarth d B e o ia C n House u T w n e E s 6 Phoenix House i e d c 2 ld k 3 L ' 8 o s o o t E m n 1 1 n 3 1 C Theatre 8 b tr a h y 25 r a e d 9 m o 1 t id H 3 b S o e 27 o 0 t u r s 1 s 7 1 e 2 7 2 5 23 rds L lla 8 O o B o M 1 t 1 4 B ge A Sta 2 R g PH 3 n D di an De 1 S L rw 0 e 3 t T f) n 3 o R 1 o C tw P 3 h a 1 E se am te H 5 r b r E ou er T (c s ll 4 Hotel 9 a 3 W 6 1 own 3 5 T 8 L 3 if ts 39 L IL 0 H 4 D E N ID A L YS e 1 S if A 4 ts U TCBs Q FB Mean High Water & Mean Low Water Guildhall W Posts 5 A 7 T E R G A T Watergate E Bollard 5 Buildings Bollard W H Post ML Outfall s lard Car Park Bol 6 0 Aberdeen Wharf Bollard PC Bollard Bo B r id g Chapel (s e i (itf) TBid Not to scale.