THE HAYMARKET HUB NEWCASTLE UPON TYNE NE1 7PF PRIME MIXED USE INVESTMENT FOR SALE INVESTMENT SUMMARY • Prime mixed use investment in the heart of Newcastle City Centre. • Iconic design providing 41,344sq ft of high quality office accommodation and 6,658 sq ft of retail on the ground floor. • Strong national tenants in occupation, with the Bank of Scotland plc and Ubisoft CRC providing the majority of income. • Weighted average unexpired lease term of 6.94 years. • 2 years rents, rates and service charge guarantees to be provided on the vacant space. • Total rent roll £1,009,200 per annum. • Asset management opportunities to increase rental income upon letting the vacant upper floors and ground floor retail units. • Long leasehold interest with 117 years unexpired at a peppercorn rent. • Offers in the region of £14,000,000 (Fourteen Million pounds). This reflects a net initial yield of 6.75% after purchasers’ costs of 6.73% have been deducted. LOCATION Newcastle upon Tyne is located in the North East of England, approximately 275 miles north of London, 100 miles north of Leeds and 120 miles south of Edinburgh. The city is the dominant commercial administrative, cultural and tourist centre of the North East region. COMMUNICATIONS ROAD The city benefits from strong road links. The A1(M) which bypasses the city to the south and west is the principal arterial road to the east coast of the UK linking London to Edinburgh. RAIL The city is located on the east coast mainline that connects London to Edinburgh and as a result benefits from excellent rail connections to the major centres of the UK, with the fastest journey time to London’s Kings Cross of 2 hours 37 mins from Newcastle. METRO The Haymarket Hub station is one of the main city centre stops on the Tyne & Wear underground rail network that runs throughout Tyneside. It stops at 60 destinations across the city and is considered one of the most efficient public transport systems in the UK. AIR Newcastle International Airport is approximately 6 miles north west of the City Centre and is accessed via the A167(M) and the A696. The airport has over 5 million passengers a year serving 80 national and international destinations. CIVIC CENTRE The Hub JOHN NORTH NORTHUMBERLANDDOBSON ST ROAD UMBERLAND B HAYMARKET AR RA ST JAMES’ CK R PARK ELDON SQUARE D SHOPPING CENTRE STREET NEWCASTL E BUSINESS SCHOO L WELLINGTON STREET PERCY ST NEW BLACKETT ST GA LLOWGATE SANDMAN GATE HOTEL SCIENCE CITY GREY’S THE GATE MONUMENT CHINATOWN MARKET STREET PILGRIM STREET D R ST A V GREY ST E BIGG L U O MARKET B S CLAYTON STREET CITY ROAD E GRAINGER STREET M A186 WESTGATE ROAD A ST DEAN J MOSLEY ST T NICH S ST 9 OLAS’ 8 1 A STREET NEVILLE ST CENTRAL STATION QUAYSIDE SITUATION The Hub is an iconic building situated over the current rental tone of circa £230 per sq universities, which together educate a total the redeveloped Haymarket Metro Station ft ITZA rebased significantly from the peak of student body of 50,000. As the Haymarket at the heart of Newcastle City Centre’s retail £330 per sq ft ITZA. Nearby retailers include lies on both lines of the Metro and serves quarter, at the top of Northumberland Street Pret a Manger, Marks & Spencer, Argos, the popular residential and student areas of and in close proximity to the main entrance of Sainsbury’s, Costa, Outfit, JD Sports and Jesmond, Gosforth and Heaton, total annual the Intu Eldon Square Shopping Centre. Superdrug. passenger usage of the station is c. 6 million Northumberland Street is the historic prime The Haymarket Metro Station is situated persons (Nexus), all of whom pass the ground retail pitch within Newcastle Upon Tyne, with equidistant from Newcastle Upon Tyne’s two floor retail elements of the subject property. DESCRIPTION The property provides retail units at ground floor level and Grade A offices over four floors above, accessed from a prestigious self-contained entrance lobby. SPECIFICATION UPPER FLOORS • Large open plan floorplates • Floor to ceiling heights: Level 1 - 2.54m Level 2 - 2.75m Level 3 - 2.4m with a perimeter double height space up to the vaulted ceiling max of 4.8m Mezzanine floor - 2.4m with the perimeter double height space down over balcony • Comfort cooling • Raised floors throughout • Suspended ceilings with LG3 and LG7 compliant lighting • 2 x 8 person passenger lift • High quality prestigious reception • 24 hour office access and CCTV security • Male and female toilets on each floor with disabled access • Fully DDA compliant • EPC rating of C • Designed to “very good” BREEAM standard TENANCY SCHEDULE UNIT AREA (SQ FT) TENANT LEASE TERM START DATE END DATE REVIEW RENT (£PA) (BREAK DATE) 1 & 9 3,971 Bank of Scotland Plc 15 years 21/09/2009 20/09/2024 21/09/2019 380,000 2 300 Newcastle Barber Limited 10 years 25/08/2011 24/08/2021 25/08/2016 30,500 3 641 Activepraise Ltd 15 years 18/05/2009 17/05/2024 18/05/2019 54,500 4 430 H & L Ltd 20 years 06/03/2015 05/03/2035 06/03/2020 40,000 5 717 Done Brothers (Cash Betting) Ltd 15 years 23/11/2009 18/12/2024 19/12/2014 60,000 t/a Betfred (19/12/2019) 6 168 Glow Bella Ltd 5 years TBC TBC TBC 15,000 7 336 Pat Robson & Co Ltd 10 years 25/02/2013 24/02/2023 24/02/2018 25,000 8 95 Prompt Technology Services Ltd 10 years TBC TBC TBC 10,000 1st Floor 11,818 Ubisoft CRC Ltd 10 years 18/09/2017 17/09/2027 18/09/2022 102,000 2nd Floor 12,304 Ubisoft CRC Ltd 10 years 17/07/2015 16/07/2025 17/07/2020 120,000 (17/07/2020) 3rd Floor 11,205 Vacant 112,050 2 years rent, rates and service charge guarantee Mezzanine 6,017 Vacant 60,170 TOTAL 48,002 1,009,200 A copy of the Service charge schedule is available upon request. TENURE The property is held by way of a long leasehold interest for 125 years from 9th July 2010 at a peppercorn rent. COVENANTS Ubisoft CR Ltd and the Bank of Scotland account for 60% of entire income. The remaining covenant profile comprises a mixture of regional and local limited companies. UBISOFT CRC LTD 31 MARCH 31 MARCH 31 MARCH Company Number - 09098750 2017 GBP 2016 GBP 2015 GBP Ubisoft CRC Ltd is a subsidiary of Ubisoft Limited, a leading creator and the Turnover 6.06m 4.23m 1.22m third largest publisher and distributor of interactive entertainment and services, with a rich portfolio of world-renowned gaming titles. Established in 2014, Profit (loss) 60k 121k 27k Ubisoft CRC is where the company collects feedback to pass on to development before taxation teams and communicates with fans on social media, as well as conducting more traditional customer service tasks. Ubisoft CRC currently employ 140 staff, Tangible 502k 341k 253k working in 14 languages and representing 24 nationalities. Net Worth BANK OF SCOTLAND PLC 31 DECEMBER 31 DECEMBER 31 DECEMBER Company Number - SC327000 2017 GBP 2016 GBP 2015 GBP The Bank of Scotland PLC is a commercial and clearing bank registered in Turnover 9.88bn 10.58bn 11.31bn Scotland, with a history dating back to the 17th century and is the fifth oldest surviving bank in the UK. Bank of Scotland has been a subsidiary of Lloyds Profit 2.80bn 3.40bn 2.65bn Banking Group since January 2009, when HBOS was acquired by Lloyds TSB before taxation to create the largest retail bank in the UK. The Bank of Scotland Plc currently employs 20,000 people in the UK. Tangible 15.10bn 15.18bn 2.65bn Net Worth MARKET COMMENTARY Newcastle Occupier Market Offices Retail Newcastle upon Tyne has a total office stock of around 9.9m sq ft which caters for Newcastle city centre has a retail floor space of approximately a broad range of private and public sector occupiers in line with the city’s status as 2.6 million sq ft. In recent years Intu Eldon Square has the regional capital of the North East. The city centre office market has continued to undergone significant redevelopment, creating space for perform strongly throughout 2018, despite the declining supply of good quality stock. new stores such as Waitrose and Debenhams, and since opening the St Andrews Way entrance into Eldon Square has Supply is set to dip below 100,000 sq ft of Grade A stock by the end of 2018 with established itself as a prime pitch alongside Northumberland headline rents pushing towards £24.00 per sq ft. Notable transactions within H1 2018 Street, historically the prime pitch. included DWF’s letting at Central Square South and Mott MacDonald’s acquisition of Time Central, both consolidating the headline rent at £23.50 per sq ft. The largest city Northumberland Street has continued to perform strongly centre letting to complete this year to date was 13,303 sq ft at Northumberland House post-recession with a number of retailers such as Primark, to Newcastle University. The Outlet, Sports Direct, Caffe Nero and Sainsbury’s taking space and reaching rental values of £330 per sq ft in terms of With supply dwindling, a number of landlords are refurbishing existing stock in order Zone A. to satisfy demand. The Haymarket Hub is one of the few grade A offices in the city able to offer large open plan floorplates direct from the landlord.