11 ST JAMES’S SQUARE MANCHESTER, M2 6WH Freehold City Centre Office Investment and Refurbishment Opportunity INVESTMENT SUMMARY • A prime location Manchester City Centre office refurbishment opportunity • Located on John Dalton Street, close to the junction with Cross Street adjacent to Albert Square, in the heart of the CBD • The immediate location will improve as a number of office redevelopments and infrastructure projects are completed • An office building arranged over four floors above ground floor retail units with a total net internal floor area of19,862 sq ft (1,845 sq m) (excluding storage areas) • Opportunity to refurbish the office floors and re-let in a strong occupational market with an anticipated estimated rental value of £21 per sq ft • Refurbishment project is supported by the current passing rent of £297,424 per annum, comprising income from the ground floor retail units and short term agreements on two of the office floors, storage areas and car parking • The property is held freehold • We are instructed to seek offers in excess of £4,750,000 subject to contract and exclusive of VAT. (N.B. the property is not elected for VAT purposes) • A purchase at this level, assuming that the retail accommodation is analysed at 6.5% and the car parking at £50,000 per space, reflects a low capital value of £161 per sq ft across the office accommodation • At this level, the purchaser will also benefit from anet initial yield of 5.88%, assuming normal purchaser’s costs Manchester – 11 St James’s Square 2 B L A C K F EET R STR I SILK A R S T R E O E A R D T S I H P L E D T A O BOL M62 (J17) T ON AND M66 (4) AY W T O M60 (J15) Y IT IN R T T E E R T M S VICT I A L I L D R ORIA A E O O R CHAPEL STR R EET T D L C E I S FI V LD T SALFORD R O E CENTRAL E T 4 B 66 A R AD I O D CHDALE R T RO O LIVERPOOL G E R M62 (VIA M602) T EG O LEEDS S E T M62 (J20) R HILL N E DE E T SHU T E A T R G O S A N D SPINNINGFIELDS A E A D Q 5 7 U A Y AD A62 T OLDHAM RO S E L T E I V R R E E E T R T S P O O N L P O S R T ET S R I E N R E ST W MANCHESTER E C R T VE A P E E LE D S T T E E S olink E G R TR etr S R S M N S O E T T R T EW A E N E R T T E E A T P T N C I C C U D O C A A I A Financial and professional services V T T D R E S E T I STRE L A T W E S L E E ND LOCATION G R ID T A Y T H S ER ROAD 5 R S L C E T A 6 B T Y E R R L S O O P E M E account for 56% of jobs in Manchester, DEANSGA R E T W O TE O L X F Manchester is the largest and fastest growing regional centre in the UK, generating wealth equal to T O M60 (J23) ranking it in the top 30 cities in the world O R D S that of Leeds, Liverpool and Sheffield combined. It comes second only to London both in business O XFORD L T O R for this sector and office based employment N ROAD T E E RE T E D S RD LA T L O terms and the quality of its city environment and retail and leisureCENTRAL amenities. SPINE O PICCADILL P N T R is forecast to rise over the coming years. O M56 AND MANCHESTER AIRPORT Y O M A A D N C A U 6 Greater Manchester is home to a population of 2.6 millionN and accounts for £28 billion of the I A N W A Y 6 3 5 A region’s GDP. The workforce, of which 65% are under 45 years old, has excellent language, technical and customer service skills. GROSVENOR STREET U P S P Manchester has one of the largest student populations in Europe with T E A R R D W B Approximately 7 million people live within an hour’s drive of theR city I C approximately 100,000 students at four universities providing the city with O K O G K R T E O M60 (J1) S E leading research and development capabilities, coupled with a highly qualified allowing employers to draw upon a large and skilled workforce. T N R E E T workforce. This is a key part of the city’s economy as it results in a wide range of high quality skilled employees being located in and around the city. The city has a broad based economy with expertise and scale in a number of industries including H Y D E R Postcode: Financial and Professional Services, Technology, Bio Science, Medical, Creative, New Media and Digital, O A D A 5 M2 6WH Aviation, Food and Logistics. Indeed, 80 out of the FTSE 100 companies have a base in the city 7 The city’s importance as a cultural and media hub is underlined by the together with over 50 international banks and 600 major overseas companies. Manchester received significant relocation of elements of the BBC including Sports, News and £1.6 billion of FDI investment between 2003 and 2014. Children’s television/radio from London to Manchester. Manchester’s ever growing profile as a tourist destination has continued to be boosted by the improved rail network with Manchester Piccadilly Station now within two hours travel distance of London and benefiting from three services an hour. Manchester Airport is the UK’s third largest Airport and is 20 minutes from the city centre, handling in the region of 22 million passengers per annum, with this figure anticipated to rise to 50 million by 2030. Manchester is recognised as an international sporting destination and in 2002 the city hosted the Commonwealth Games. The city is home to Manchester United and Manchester City football clubs, both of which draw in a high number of visitors in both domestic and European competition. The region’s sporting importance remains strong with recent major events including the Paralympic World Cup, UEFA Cup Final, FINA World Swimming Championships, UCI Track Cycling World Championships and Bupa Great Manchester Run. Manchester – 11 St James’s Square 3 INWARD INVESTMENT Manchester has attracted significant inward investment with recent examples including the BBC, Bank of New York Mellon, Ford, Worldpay and Freshfields. Inward investment has also originated from the Middle East, China, USA and Europe, with the strength of demand resulting in yield compression on prime assets over the course of the past 24 months. This is set to continue over the next five years as a number of major strategic developments progress, many benefitting from involvement of non UK based investors, including: An £800 million, 20 acre mixed use redevelopment scheme. The first building, One Angel Square attracted bids from six continents. It was purchased by a Joint Venture involving both European and Far Eastern equity. A three phase scheme on land adjacent to This is one of the largest development schemes in the UK with a proposed 5 million sq ft of office, Manchester City Football Stadium as a result of logistics and manufacturing accommodation. There has been a reported £800 million investment by inward investment from the United Arab Emirates Beijing Construction Engineering Group – one of the largest single investments by a Chinese company in through sponsorship by Etihad Airways. Britain. We understand that the United Arab Emirates also provide investment in the scheme alongside investment in the Etihad Campus. A 200 acre mixed-use development with £350 The site which was home to Granada Television for 50 years has a masterplan including over 2,400 million invested in the first phase of 36 acres residential units, a new world class cultural venue, innovative work space and a rich mix of retail and leisure. completed in 2011. MediaCityUK is supported by MIDAS (Manchester Investment Development Mayfield Agency Service) which works with the ten Local A planned £850m mixed-use community development on a 24 acre site adjacent to Piccadilly station. It Authorities of Greater Manchester to attract is envisaged that the site, once home to the Mayfield railway station, will provide 1,300 homes, 75,000 sq inward investment into the region by promoting m of office space, a 350-bedroom hotel, retail and leisure facilities and a new city park in total creating Manchester as a leading European business location. over 7,500 office, retail, leisure and construction jobs. Manchester – 11 St James’s Square 4 Ordsall Chord CGi Oxford Road Station CGi Second City Crossing In addition to inward investment, there are also a number of ongoing infrastructure projects in the pipeline, which will improve the city. Second City Crossing Victoria Station HS2 CGi A new cross City Centre route and station to increase capacity on the Metrolink. Ordsall Chord HS2 and HS3 A new railway line currently under construction to link Manchester’s High speed rail links to the South and across the North which will shorten journey times between major economic Piccadilly and Victoria stations which will enable faster, more frequent centres and free up capacity for local services across the region.