1 EAST PARADE & 8 ST PAUL’S STREET LEEDS LS1 2AA Landmark City Centre Investment Opportunity INVESTMENT SUMMARY Rare investment opportunity to acquire a landmark office building in the heart of Leeds’ core office location. The property comprises 67,456 sq ft of office accommodation and retail accommodation. This is split between 48,458 of office space in 1 East Parade and 15,888 of office space and 3,110 retail space in 8 St Paul’s Street. 31% vacancy providing excellent asset management opportunity. The property is multi-let to 11 tenants, providing an average weighted unexpired lease term of 2.80 years to break and 4.26 years to expiries. Total net passing rent of £933,302 per annum, reflecting an average rent of £19.59 psf on the let office accommodation. Prime rents in Leeds currently stand at £27.00 per sq ft providing excellent opportunity to drive rental value. 94% of the income secured against tenants of below average risk of failure or better. 51 car-parking spaces. Freehold. We are instructed to seek offers in excess of £16,000,000 (Sixteen Million Pounds). Assuming purchaser’s costs of 6.73%, an offer at this level would reflect: Triple Net Initial Yield - 5.47% Reversionary Yield - 8.27% (Adopting ERVs on current void) Reversionary Yield - 8.71% (Adopting ERVs on the whole) Capital Value - £237 psf 2 LOCATION Leeds is the UK’s third largest city with a population of 798,000 and a catchment of ABERDEEN 3 million. It is the financial hub of Yorkshire and the north east and one of Europe’s leading business locations. The Leeds City region has the fastest growing workforce in the UK and at 1.9 million, the workforce is the largest outside of London, with 31% educated to degree level. GLASGOW EDINBURGH Leeds is the registered base for over 109,000 companies and has an annual economic output worth £60.5 bn. The City is the second largest centre for financial services in the UK, after London. The City is home to 30 national and international banks, NEWCASTLE 150 legal firms including Eversheds, DLA Piper, Irwin Mitchell and 200 accountancy firms including Deloitte, KPMG and PWC. Leeds is home to eight universities giving the city the largest concentration of HULL universities in Europe, producing some 36,000 graduates a year. LEEDS MANCHESTER SHEFFIELD LIVERPOOL 798,000 60.5bn BIRMINGHAM largest city population + economic in the U.K. 3m catchment output BRISTOL 1.9m 8 universities Financial hub of LONDON workforce = Yorkshire and the the largest outside of 36,000 North East London and growing... graduates per year £ 3 CONNECTIVITY ROAD The City benefits from excellent connectivity to the Leeds benefits from excellent road communications with four major rest of the UK and Europe, being at the heart of a motorways within 10 miles of the city centre. The City lies on the M621, number of network hubs. which provides direct access to the M1 and M62 motorways, 5.4 miles and 7 miles away respectively. The A1(M) also lies 10 miles to the east. DESTINATION DISTANCE London 180 miles Leeds Bradford Airport 7 miles Sheffield 35 miles Manchester 40 miles Birmingham 120 miles RAIL Leeds City Station is the busiest station in northern England with over 900 trains a day and serving almost 29 million passengers each year. It is served by the East Coast Main Line which provides services to London King’s Cross, as well as a host of regional cities including Manchester, Sheffield, Newcastle, Edinburgh and Birmingham. DESTINATION TRAVEL TIMES London 1hr 59 mins Sheffield 40 mins Manchester 49 mins Birmingham 1hr 47 min Newcastle 1hr 20 mins AIR Leeds Bradford International Airport lies 7 miles to the north west of Leeds City Centre. The airport serves 80 national and international destinations - including four daily flights to London - for over 3.5 million passengers each year. 4 AD RO ING D R R A E O H N N R Y D I E K R TE Leeds C C R A R A P L A Beckett A C R E V S L R University L E Q E CL E ARENDON R U N WAY L V E N A ELM D Y E R W O O E O L S U E SKI N T Q O NNE R R D R O E first direct LAN A E L E D T A G Arena N R AF D E T ON A SITUATION LS1 2AA S O L T R R E ME EE R S T E N W RR I D B N C O G U O N A N U W E R T O A N LE R Civic Y A E Leeds D L V 1 East ParadeY & 8 St Paul’s Street are situated in T T Hall H Y E R General A E O R O B Y G R L A O S the heart of the commercial and financial district of Infirmary L D T U N E T E Merrion S S S T N R R Y E E E A E Leeds City Centre, prominently positioned on the T E Centre L S W E T E ST L T corner of the two streets, providing an excellent R A D N T O A E T NG N E E Millennium SI W business location. G AND OS E T E L T R RT ST R A R P P E O Square F A P A T R A O L G S K L R R ER E GO A K G W B N E STREET ST ER ST G U E ORGE The S S GE The property is well located for transport links with T GREAT T M L T E R RR D T S I ON I L P Cube E ST R R E EE R Leeds City Station 450m toY the south. Leeds’ Retail E E T E D B S Courts Courts R G T E R ST ANN ST St Johns R Library T E T E Town D O S Quarter and primary shopping centre,T Trinity Leeds, I Centre F Hall R X N T lies 500mKI to the east. K EM R O P O O KS I LAR T B S A O The Light MAR T L L K LA L WESTGATE C NE R A The property alsoOA lies close to a number of the bars, THE H D EU ADROW TPA P R P S K S E restaurants and cafés, including; The Alchemist, Q E E N T O R A RT T W H B G S SO T Iberica, Gusto, Stockdales, Ricci’s, Black House, and UTH A E Park A PARADE A Q STGA S S E S E TE E A W Square I E E N K N San Carlo’s. Q D O N R G E S A B A S P A E T A DFORD ST R GA A R H A T K L E K E R P S Q L T A S R O S A A U L The G TH A R P L T D P S A S Core The immediately surrounding area has attracted E T K D N Victoria T Victoria W C S A STREET R S GREEK I O T PA A A A Leeds U L Leeds V West numerous high quality office occupiers including; R L L’S S P S E G I TR T S EE Yorkshire N T T P I B T S Gateley’s Solicitors, Bilfinger GVA, CBRE, ALBIO E R E N Playhouse O P I PLACE ER R AR N DY T E K BO E N PL F ND ST E R AC Dentsu Aegis Network, Deloitte, Walker MorrisN E I R R B T O S N M N E S I S D MER T S COM C T I T A AL T S and Pinsent Masons. R A S R A N Q T S T E Y E L R T U G K T E I Y S B R City E GRO E O E E T K R G G E V T E K B I E ST R I A U E PL O T Bus A E E E K T C R R Q E C E N R ET T S T B Station RE A S T ST S R RK M T O G E Y E Q R W N S Trinity ELLING I T E W T Y E K N ON K E EW YOR REET STRE IT Leeds IR K ST E T T C N KG T T A E EE T RE CITY DUN TR E T SQ CAN S S SH T BO R A EE AR A The Subject Property IRE STR LANE M KIRKGATE AD RO LL NE CommercialHA Core W STATIO LLS ITE N ST CA WH E LEEDS TH Retail Core CITY STATION THE CALLS RE AI R E T T IV E EE R E TR T S R B CK E T S R DO E I N D R G G T I BOW E E MAN LANE S R E E E V N L O L S D WATE I RLOO STREET V LEEDS E AN G D LIVE N L RPOOL H O CANA U B L N 5 The Tetley E D S D ROA L A E O T R R T D O IN A A O O D P E E AN R Asda HQ L N ATER N S W A A W P I R L O IN R R C G O W W E T O L C D I L A R V O E GRE A AT W D M ILSO N ST REET AMENITIES THE SUBJECT PROPERTY BOND COURT CITY SQUARE NEARBY OCCUPIERS La Bottega Milanese, Restaurant Bar & Grill, Costa, Jamie’s Italian Banyan THE SUBJECT PROPERTY PARK ROW TRINITY LEEDS Caffe Nero, Gaucho LEEDS TOWN HALL WALKER MORRIS GREEK STREET The Decanter BANK OF ENGLAND SOUTH PARADE The Alchemist, YORKSHIRE BANK VICTORIA LEEDS San Carlo, Sukothai Gusto, Carluccio’s, PINSENT HSBC Lost & Found DLA PIPER MASONS DELOITTE fd ARENA PARK SQUARE COMMERCIAL CORE RETAIL CORE RAILWAY STATION 6 THE PROPERTY 1 EAST PARADE 1 East Parade was constructed in the 1980s and provides one of Leeds’ landmark office buildings in the City’s prime office core.